Getty ImagesAmerican shares and the dollar have plunged again while President Donald Trump intensified his attacks on the boss of the American central bank qualifying him as “major loser” so as not to reduce interest rates.
In an article on social networks, Trump called the president of the federal reserve Jerome Powell to reduce “preventively” interest rates to help stimulate the economy, saying Powell had been constantly too slow to respond to economic developments.
“There can be a slowdown in the economy unless Mr. Too late, a large loser, reduces interest rates, now,” he wrote.
Trump’s criticism on the management of Powell of the American economy intervenes while his own plans for the prices led to a stock market sale and raised fears of the economic recession.
The president’s intensification with Powell, whom he appointed to lead the Fed during his first mandate, added to the market turmoil.
The S&P 500, which follows 500 of the largest American companies, fell around 3% in the early afternoon on Monday. It has lost around 12% of its value since the start of the year.
The industrial average of Dow Jones dropped by 2.9% and has dropped by around 10% so far this year, while the NASDAQ fell by more than 3.4% and has been down around 18% since January.
Although the dollar and the US government obligations are generally considered as safe assets during the market disorders, they have not escaped recent turbulence.
The dollar index – which measures the strength of the dollar compared to a set of currencies, including the Euro – dropped on Monday at its lowest level since 2022.
Interest rates on American government debt also increased because investors have required higher yields for the holding of treasury bills.
Trump’s criticism of Powell dates back to his first mandate, when he also discussed the dismissal. Since he won the elections, he has urged Powell to reduce borrowing costs.
The latest criticisms follow Powell’s warnings that Trump’s import taxes were likely to increase prices and slow down the economy.
Trump last week called publicly for Powell to be dismissed, writing on social media Thursday: “Powell’s dismissal cannot come quickly enough”.
Such a decision would be controversial – and legally questionable – given a tradition of independence to the bank.
Powell last year told journalists that he did not think that the president had the legal power to withdraw him.
But one of Trump’s main economic advisers confirmed that managers are studying the option on Friday when the stock market in the United States was closed for trade.
