Key Takeaways
- U.S. inventory indexes fell by round 2.5% following Trump’s criticism of the Fed.
- Trump urged the Fed to chop charges, calling Powell a ‘main loser.’
- Bitcoin hit a four-week excessive of $88,500 as markets reacted.
U.S. inventory markets fell sharply on April 21 as former President Donald Trump ramped up criticism of Federal Reserve Chair Jerome Powell, renewing requires rate of interest cuts.
The S&P 500 dropped 2.4%, the Nasdaq slipped 2.5%, and the Dow Jones fell by almost 1,000 factors, persevering with a downward development in 2025.
The S&P 500 has now declined over 12% year-to-date, whereas the Nasdaq is down nearly 18%.
Trump’s criticism
In a publish on Fact Social, Trump urged the Fed to behave.
He wrote:
‘Preemptive Cuts’ in Curiosity Charges are being known as for by many. With Power Prices means down, meals costs […] considerably decrease, and most different ‘issues’ trending down, there may be nearly No Inflation.
Trump additionally labeled Powell “Mr. Too Late” and a “main loser,” intensifying his push for a charge reduce.
Fed’s response
Powell beforehand warned that commerce tariffs might set off stagflation—a mixture of excessive costs and slowing development.
Trump responded by calling for Powell’s dismissal, saying:
His termination can not come quick sufficient.
Market expectations
Regardless of the political tensions, the Federal Reserve is anticipated to carry rates of interest regular at its Could 7 assembly, with markets pricing in solely a 13% probability of a reduce, in line with CME Fed Watch.
Forex & crypto impression
The U.S. Greenback Index fell beneath 98 on April 21, its lowest level in three years.
Bitcoin, nevertheless, surged to a four-week excessive of $88,500, serving to preserve the digital asset market’s capitalization at $2.83 trillion.