Wall Street. Photo: Haraldur Stefansson / Alamy / Profimedia
The actions have declined, the bonds were sold again, and the US dollar continued to lose ground on Monday, in the context in which President Donald Trump has launched new attacks on Jerome H. Powell, the president of the federal reserve (FED), which is worried about the anxious investors who believe that the US Central Bank is The New York Times.
The Wall Street scholarship started the day with a sudden drop, but massive sales have taken over after the attack launched by Trump to Powell, which he called “a big loser” in a post that urged the FED to reduce the interest rate. The US president also suggested that Powell will be to blame for any economic slowing down.
Until 23, Romania time had been registered a minus of 3% on the New York Stock Exchange
The S&P 500 index has decreased by over 3%, just like the NASDAQ Composite index, focused on technology. All the major sectors of the S&P 500 have decreased, the areas of technology, energy and consumer goods being the most affected.
The US president had criticized the Fed chief and last week, when he told reporters that he would be removed “quickly” from office “if I want him outside”.
The statement came in the context in which, on Wednesday, the FED president warned that Trump's rates could create a “provocative scenario” by tensioning the two main objectives that the central bank has, the stability of inflation and the health of the labor market.
Investors in action tend to favor lower interest rates, which helps companies borrow and expand their business. Often, action prices increase when investors expect a Fed Rate Decision – even when it is the result of bad economic news.
However, the recent market reaction to Trump's calls for lower rates suggests that investors believe that the threat to FED independence exceeds any benefit that a change in rates can bring.
Uncertainty on financial markets
The new attacks of the president at the head of the FED chief increase an uncertainty already injected on the financial markets with the chaotic launch of customs tariffs and threats with the appearance of others, said John Mowrey, the investment director of NFJ Investment Group.
“There are a number of things that could be very disturbing to the market, while trying to sail through what he doesn't really know how to sail, namely the political uncertainty about customs tariffs,” Mowrey said, adding that “Powell is one of them.”
The Trump administration has acknowledged that the probability of a recession has increased, and Mowrey believes that the President's statements about Powell signal an effort to “have the books ready to blame others if this happens.”
US government bonds have become a major concern for Wall Street and the White House, because they have collapsed in recent weeks. On Monday, the yield of treasury securities increased at one time to over 4.4%, as investors sold obligations.
Also Monday, the US dollar continued to decrease in relation to almost all other important coins. It has decreased by about 1% compared to the euro, the lowest level in the last three years, and in relation to the Japanese yen has reached the lowest level recorded after September 2024.
Although a weaker dollar causes American goods to be cheaper abroad, a substantial change could signal that investors are moving away from the long belief that the dollar and American assets are a safe refuge and choose, instead, to invest their money elsewhere.
