Washington: US President Donald Trump’s sharp comments on Federal Reserve Chairman Jerome Powell caused a stir in the stock market. On April 21, Trump called Powell a “loser” and demanded to reduce interest rates and threatened to fire him. This statement increased investors’ concerns about the Fed’s autonomy, causing the Dow Jones Industrial Average to fall 972 points (2.48%) to close at 38,170.41. The S&P 500 fell 2.36% and the Nasdaq fell 2.55%.

White House economic advisor Kevin Hassett said, “The President may explore options to remove Powell.” Swiss Quotbank analyst Epik Ozkardiskaya warned, “This stance of Trump can further increase market volatility.” Trump’s tariff policies and the fear of a global trade war had already kept the market under pressure. Investors are now moving towards safe assets amid uncertainty, due to which gold reached a record high.
This is not the first time Trump has attacked the Fed. His policies and statements have caused turmoil in global markets. Economic expert Reena Sharma says, “Questioning the independence of the central bank is dangerous for long-term economic stability.” The market is now keeping an eye on Trump’s next move and the Fed’s response.