The actions on Wall Street and the dollar decreased strongly on Monday afternoon on the background of the increasing uncertainty about the US economy, while President Donald Trump resumed his attacks on the president of the federal reserve. American actions have opened decreased, and sales intensified as Trump was targeted on the central banker. The S&P 500 index decreases by 3.3 % during the New York lunch session, while the Nasdaq Composite index, which is based on technology, loses 3.5 %. In a post on the SA Truth Social Platform Monday morning, shortly after the market opening, Trump said that Powell, whom he called «the Lord too late», should reduce the interest rates «now» to stimulate the economy. The market movements came after Kevin Hassett, the director of the National Economic Council, said on Friday that Trump would «continue to study» the issue of Powell's dismissal, after the president held the day before he has the right to dismiss the Fed President. Trump repeatedly criticized Powell because he did not reduce interest rates quickly enough, while Fed president said he would never be influenced by political pressures. «If you think it is unacceptable for President Trump to be frustrated by the FED's political history, then I think. You have to give some explanations,» Hasset told Washington reporters on Friday, when American markets were closed. On Monday, the dollar dropped by up to 1.5%, to the minimum of the last three years, compared to a basket of its main trading partners, while the euro won 1%, at $ 1,151, and the yen strengthened by 1%, at 140.82 yen compared to the dollar. The US sovereign debt remained weaker during the day, but has reduced some of the previous losses. The efficiency of the 10 -year -old US treasury bonds increased by 0.06 percentage points, to 4.39%, after Trump's last post on social networks. The yields of the bonds evolve the opposite to prices. Thierry Wizman, a global strateg on the foreign exchange market and interest rates in Macquarie, said that the «Dollar escape» was determined by the increasing concerns about FED independence, as well as the lack of progress of Washington regarding commercial agreements. Fed establishes the monetary policy independently of the other branches of the government. Any attempt to remove Powell, whose mandate is scheduled to end in May 2026, or to exert pressure on monetary policy could cause new turbulence on US markets, according to investors and analysts.
For other news, analyzes, articles and information from real -time business follows the financial newspaper on WhatsApp Channels