US stocks and the dollar continued to slide after President Donald Trump intensified his criticism of Federal Reserve Chair Jerome Powell, calling him “a major loser” for not slashing interest rates. Trump, in a social media post, demanded that Powell cut rates “pre-emptively” to avoid a potential economic slowdown, accusing him of being too slow to act.
The attacks have stoked more market anxiety amid already fragile investor confidence. The S&P 500 dropped 2.4% on Monday, with the Dow and Nasdaq falling over 2.5% each. All major US indexes have suffered significant losses since the start of the year, with the Nasdaq down 18%.
The dollar index also dipped to its lowest level since 2022, while yields on government debt rose. Gold, meanwhile, surged past $3,400 an ounce as nervous investors sought safer assets. Trump’s renewed push for Powell’s ouster, a legally questionable move, has added to the uncertainty, despite Powell asserting presidential removal powers don’t apply to his position.
