Stocks and Dollar Dive as Trump Lashes Out at Powell Over Rates

In an alarming turn of events, U.S. stocks and the dollar witnessed a sharp decline due to President Donald Trump's escalating criticism of Federal Reserve Chair Jerome Powell, whom he branded a "major loser" for not cutting interest rates. Trump urged Powell to take "pre-emptive" action to stimulate the economy amidst fears of a recession fueled by recent tariff plans. The S&P 500 suffered a 3% drop, while the Dow Jones and Nasdaq also saw significant losses. The dollar index plummeted to its lowest since 2022, highlighting the negative sentiment surrounding the economy. Trump's ongoing feud with Powell raises concerns over the independence of the Federal Reserve and the future direction of U.S. economic policy.

U.S. stocks and the dollar faced a significant downturn as President Donald Trump targeted Federal Reserve Chair Jerome Powell in an aggressive social media campaign. Criticizing Powell's reluctance to lower interest rates, Trump claimed that such inaction could harm the economy, dubbing Powell "a major loser." This latest confrontation escalated market fears amidst a backdrop of tariffs and rising recession concerns. The S&P 500 dropped around 3%, while the Dow Jones and Nasdaq experienced similar declines. The dollar index fell to its lowest level in over a year, indicating widespread unease. As Trump suggests a push to fire Powell, the market remains anxious about the Fed's independence and economic direction.