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US stocks and the dollar plunged again as President Donald Trump intensified his attacks on the US central bank boss calling him “a major loser” for not lowering interest rates.<\/p>\n
In a social media post, Trump called on Federal Reserve chair Jerome Powell to cut interest rates “pre-emptively” to help boost the economy, saying Powell had been consistently too slow to respond to economic developments. <\/p>\n
“There can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” he wrote.<\/p>\n
Trump’s criticism of Powell’s handling of the US economy comes as his own plans for tariffs have driven a stock market sell-off and raised fears of economic recession. <\/p>\n<\/div>\n
The president’s intensifying clash with Powell, whom he named to lead the Fed during his first term, has added to the market turmoil.<\/p>\n
The S&P 500, which tracks 500 of the biggest US companies, fell roughly 2.4% on Monday. It has lost roughly 12% of its value since the start of the year. <\/p>\n
The Dow Jones Industrial Average dropped 2.5% and has dropped about 10% so far this year, while the Nasdaq fell more than 2.5% and is down roughly 18% since January.<\/p>\n
Though the dollar and US government bonds are typically considered safe assets in times of market turmoil, they have not escaped the recent turbulence. <\/p>\n
The dollar index – which measures the strength of the dollar against a set of currencies including the Euro – on Monday fell to its lowest level since 2022. <\/p>\n
Interest rates on US government debt also rose, as investors demanded higher returns for holding Treasuries.<\/p>\n
Trading on most major stock indexes was subdued on Tuesday morning.<\/p>\n
Japan’s Nikkei 225 and the ASX 200 in Sydney were around 0.1% lower. Hong Kong’s Hang Seng was down by about 0.5%.<\/p>\n
Meanwhile, the price of gold hit a new record high as investors seek out so-called “safe-haven” assets.<\/p>\n
Spot gold crossed the $3,400 (\u00a32,563) per ounce mark for the first time on Monday.<\/p>\n
The precious metal is viewed as a safer place to put money during times of economic uncertainty.<\/p>\n<\/div>\n
Trump’s criticism of Powell dates back to his first term in office, when he also reportedly discussed firing him. Since winning the election, he has urged Powell to lower borrowing costs.<\/p>\n
The latest criticism follows Powell’s warnings that Trump’s import taxes were likely to drive up prices and slow the economy.<\/p>\n
Trump last week called publicly for Powell to be fired<\/a>, writing on social media on Thursday: “Powell’s termination cannot come fast enough.”<\/p>\n Such a move would be controversial – and legally questionable – given a tradition of independence at the bank.<\/p>\n