Trump Attacks on Powell Roil U.S. Markets

U.S. Treasury yields fluctuated sharply as President Donald Trump's public criticism and threats toward Federal Reserve Chair Jerome Powell, including calls for rate cuts and firing him, unsettled investors. The 10-year Treasury yield surged above 4.40% amid heightened concerns over Fed independence and ongoing trade tensions with China, intensified by new tariff threats. This turmoil led to a selloff in U.S. bonds, a weaker dollar, and record highs for gold as investors sought safe-haven assets. Cryptocurrencies like Bitcoin and Ethereum also saw significant declines following the spike in yields. Markets partially rebounded midweek after Trump clarified he did not intend to fire Powell and expressed willingness to negotiate tariffs, easing some investor anxiety. Despite this, overall sentiment remained fragile due to worries about unpredictable policy moves and recession risks.