Markets: Wall Street wobbles after Trump’s criticism of the Fed

Black Monday on US markets. Wall Street’s three major indices stalled after a new salvo of criticism from Donald Trump against the Federal Reserve.

The Dow Jones lost 971 points, or -2.48%. The S&P 500 is down 2.36%, and the Nasdaq, heavily exposed to technology stocks, is down 2.55%.

Donald Trump published a message on Truth Social in which he calls Fed Chairman Jerome Powell “Mr. Too Late, a big loser”, and calls for an immediate rate cut to avoid an economic slowdown.

He even raises the idea of firing Jerome Powell, a hypothesis already floated by his economic advisors. A statement that raises fears of a challenge to the central bank’s independence.

All S&P 500 sectors ended in the red: -2.9% for consumer discretionary, -2.7% for tech, -1.3% for consumer staples.

Political interference in monetary policy is worrying investors. In an environment already tense with trade wars and global uncertainties, tensions between Trump and the Fed are becoming a new factor of volatility.

source: Le monde