US stock markets fell again on Monday as Donald Trump continued attacks against the Federal Reserve chair, Jerome Powell, who the US president called “a major loser” for not lowering interest rates.
“There can be a slowing of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump wrote on social media.
In recent days, Trump has amped up attacks against the Fed chair, pushing Powell to lower interest rates to offset the inflationary impacts of the new tariffs.
Trump is pressuring the Fed to cut rates, likely to appease the stock market, which plummeted after he announced his newest slate of tariffs. But Wall Street isn’t taking the bait and appears to be reacting in opposition to Trump’s attacks against Powell and the independence of the US central bank.
The Dow ended the day down 2.5%, while the tech-heavy Nasdaq Composite fell over 2.5% down and the S&P 500 fell 2.4%. Former tech stocks favorites including Tesla and Nvidia lost ground, while the value of the dollar fell to multiyear lows against most major currencies.
Stock markets had recovered the losses they endured after Trump rolled out his “liberation day” tariffs proposals, which would have imposed huge levies on all of the US’s trading partners. But almost all the gains made in the stock market following Trump’s announcement of a 90-day pause of his so-called reciprocal tariffs have been erased amid these new jabs against Powell.
Powell, known to be extremely measured in his public remarks, has in recent weeks spoken out about Trump’s tariffs and warned that they may lead to a “challenging scenario” for the Fed, implying that the Fed has no plans to cut interest rates anytime soon.
The Fed has long been treated as a nonpartisan, nonpolitical federal agency, though Trump has recently floated the idea of terminating Powell, whose term is up in May 2026. “Powell’s termination cannot come fast enough!” Trump wrote on social media last week.
Such a move would be unprecedented and would likely put Wall Street into a further tailspin. In an interview with CNBC, Krishna Guha, the vice-chair of Evercore ISI, an equity research firm, said that there would be a “severe reaction” from markets if Trump fires Powell.
