22.04.2025 01:00
After U.S. President Donald Trump harshly criticized Fed Chairman Powell for not lowering interest rates, the New York stock market experienced a sharp decline on the first trading day of the week. The Dow Jones index lost 970 points.
The New York Stock Exchange finished the first trading day of the week with a sharp decline as U.S. President Donald Trump intensified his criticisms of Federal Reserve (FED) Chairman Jerome Powell.
TRUMP'S HARSH WORDS FOR THE FED CHAIRMAN
U.S. President Donald Trump stated that there could be an economic slowdown if Federal Reserve (Fed) Chairman Jerome Powell does not lower interest rates. Trump said, "Powell has always been very late to lower rates, except to help sleepy Joe Biden during the election period and then Kamala."
NEW YORK STOCK EXCHANGE CRASHED
Following Trump's statement, the New York Stock Exchange crashed on the first trading day of the week. At the close, the Dow Jones index lost over 970 points, decreasing by 2.48% to 38,170.41 points. The S&P 500 index fell by 2.36% to 5,158.20 points, and the Nasdaq index declined by 2.55% to 15,870.90 points. As uncertainties stemming from President Trump's protectionist trade policy continued, the stock markets exhibited a negative trend amid concerns about the Fed's independence.
TRUMP'S CRITICISMS OF THE FED CHAIRMAN ARE INCREASING
Last week, President Trump also criticized Fed Chairman Powell for being "late" in lowering interest rates. Expressing his dissatisfaction with Powell, Trump stated that if he wanted Powell to resign, he would leave immediately. Trump, who commented that Powell was engaging in politics, indicated that interest rates needed to be lowered. Trump's increasing criticisms of Powell had raised concerns about the Bank's independence.
FED IS NOT BACKING DOWN
Despite President Trump's repeated calls for lower interest rates, Fed officials signaled that they would take a cautious approach, pointing to increased uncertainties due to tariffs. Trump's criticisms of Powell have further shaken investor confidence, which has already been declining due to the current tariff policy on U.S. assets. While the U.S. 10-year Treasury yield rose to 4.41%, the dollar index fell to 98.17, down nearly 1%.
As news flow regarding tariffs is closely monitored by investors, Trump stated in a speech at the Easter ceremony held today that it is highly likely they will reach an agreement with the European Union (EU) regarding customs tariffs, saying, "Ultimately, we will make a deal with everyone." On the other hand, the Beijing administration reacted to claims that the U.S. was pressuring China to limit trade in exchange for tariff exemptions in negotiations with countries that faced increased customs duties under "reciprocal tariffs."
Analysts noted that the messages from the International Monetary Fund (IMF) and World Bank's Spring Meetings, which will be held this week in Washington, D.C., will also be in focus for investors, along with the macroeconomic data agenda and the earnings reports of technology companies like Tesla, IBM, and Alphabet that will be released this week.