Investors flee US assets as Trump attacks Fed’s Powell and calls for rate cuts

Investors continued to retreat from U.S. assets amid escalating tensions between President Donald Trump and Federal Reserve Chair Jerome Powell. Trump renewed his calls for interest rate cuts, calling Powell “a major loser” in a Truth Social post and blaming him for potentially slowing the economy.

“There’s almost no inflation, but we could see an economic slowdown unless Mr. Too Late lowers rates NOW,” Trump wrote, also accusing Powell of helping Democrats during the last election by cutting rates too late.

His remarks reignited concerns about the Fed’s independence, leading to a sharp sell-off across U.S. equities, bonds, and the dollar—which dropped to a three-year low.

Markets took another hit post-Easter, with the Dow, S&P 500, and Nasdaq all falling over 2% on Monday. Trump’s earlier tariff moves had already shaken investor confidence, but his latest attacks on the Fed could further destabilize financial markets and global economic sentiment.

via Euronews