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  5. US stocks and dollar fall as Trump criticizes Federal Reserve chairman

US stocks and dollar fall as Trump criticizes Federal Reserve chairman

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US stocks and the dollar experienced a significant decline due to fears over the central bank's independence. The S&P 500 dropped 2.36%, while the Nasdaq Composite fell 2.55%. This was one of the steepest one-day declines of the year. US equities opened lower, then dropped further after the opening bell. This was influenced by Trump's criticism of Federal Reserve Chairman Jerome Powell, who Trump labelled a "major loser" for not cutting interest rates.

  1. US
    Austan Goolsbee
    Federal Reserve Bank of Chicago
    1. When there is interference over the long run, it's going to mean higher inflation.
  2. AU
    Zac Gross
    Monash University
    1. You almost need a degree in psychology to forecast where the economy and stock market are going.
    2. Financial markets are… aware of certainly the damage that such a fight would cause.
    3. I think that is terrifying markets, because a politicised Fed would be one in which we see much higher inflation, and accordingly, much higher interest rates eventually, which would ultimately lead stock markets into a massive crash.
  3. GB
    Stephen Innes
    SPI Asset Management
    1. It's sticking. Investors, allies, and even central banks are starting to bake in the idea that American policymaking, both fiscal and monetary, is now a geopolitical variable – not a given.
    2. More generally, investors will be less interested in holding investments in the United States if they believe the Fed will not be independent in the future because that means the US economy will not perform as well in the future as in the past.
  4. US
    Joseph E Gagnon
    Peterson Institute for International Economics
    1. We know from experience in the United States and many other countries that politicians are tempted to ease monetary policy while they are in office because the initial effects are to increase growth and employment. Only later, perhaps when they have left office, does the higher inflation show up.
    2. Markets understand this and are worried that President Trump may try to undo the Fed's longstanding protection against political interference.

US Economy

  1. US Federal Reserve maintains pause in rate cuts amid uncertainty over inflation and unemployment risks
  2. US economy contracts in first quarter
  3. US President Trump reaffirms commitment to not terminating Federal Reserve chairman amidst ongoing economic disputes

sources

  1. 1.CGTN
  2. 2.France 24
  3. 3.The Times
  4. 4.Al Jazeera
  5. 5.ABC News (Australia)
  6. 6.Le Monde
  7. 7.ABC News
  8. 8.Agence France-Presse
  9. 9.CNBC
  10. 10.Reuters

perspectives

  1. 1.US under Donald Trump
  2. 2.US Politics
  3. 3.US under Joe Biden
  4. 4.US Economy
  5. 5.Inflation
  6. 6.Central Bank

countries

  1. 1.ChinaCN
  2. 2.Hong KongHK
  3. 3.IndiaIN
  4. 4.Iran, Islamic Republic ofIR
  5. 5.JapanJP
  6. 6.SingaporeSG
  7. 7.Taiwan, Province of ChinaTW
  8. 8.United StatesUS

organizations

  1. 1.Federal Reserve SystemUS
  2. 2.White HouseUS
  3. 3.Nasdaq
  4. 4.Truth Social
  5. 5.US Supreme CourtUS
  6. 6.Alphabet Inc
  7. 7.AppleUS
  8. 8.Cresset Capital Management
  9. 9.Dow Jones
  10. 10.Economic Club of Chicago
  11. 11.Federal Open Market CommitteeUS
  12. 12.Federal Reserve Bank of Chicago

persons

  1. 1.Donald TrumpUS
  2. 2.Jerome PowellUS
  3. 3.Kevin HassettUS
  4. 4.David Charter
  5. 5.Joe BidenUS
  6. 6.Austan GoolsbeeUS
  7. 7.Emma Powell
  8. 8.Jack Ablin
  9. 9.Jack Barnett
  10. 10.James David VanceUS
  11. 11.Joseph E GagnonUS
  12. 12.Kevin Lamarque

technicals

  1. 1.West Texas Intermediate