Trump’s Fed Attacks and Trade Fears Roil Markets

U.S. and global financial markets faced significant turmoil after President Donald Trump publicly criticized Federal Reserve Chair Jerome Powell, calling him a 'major loser' and demanding immediate interest rate cuts. The Dow Jones, S&P 500, and Nasdaq all fell over 2%, with tech stocks such as Tesla and Nvidia experiencing notable declines. The U.S. dollar index dropped to a three-year low, while safe-haven assets like gold and bitcoin gained as investors retreated from U.S. assets. Treasury yields climbed as concerns about Federal Reserve independence and Powell's job security intensified amid speculation of political interference. Ongoing uncertainty over new tariffs and trade tensions with China further exacerbated market instability and capital outflows. Although economists state that a recession is not yet imminent, they warn that the risk is rising due to policy uncertainty and shifting global capital flows.