Donald Trump has managed to make US stocks and the dollar plunge after he called the US central bank boss a “major loser.”
In a post on social media, the president hit out at Federal Reserve chair Jerome Powell as he urged Powell to cut interest rates.
Trump said by “pre-emptively” cutting rates, Powell would help boost the US economy but accused the Fed chair of being consistently too slow to respond to economic developments.
Writing on Truth Social on Monday morning, the president said: “‘Preemptive Cuts’ in Interest Rates are being called for by many. With Energy Costs way down, food prices (including Biden’s egg disaster!) substantially lower, and most other ‘things’ trending down, there is virtually No Inflation.
“With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW.
“Europe has already ‘lowered’ seven times. Powell has always been ‘To Late,’ except when it came to the Election period when he lowered in order to help Sleepy Joe Biden, later Kamala, get elected. How did that work out?”
The post is the latest attack from Trump on Powell, after he publicly called for the Fed chair to be fired last well, saying Powell’s “termination cannot come fast enough.”
Following this post, the S&P 500, which tracks 500 of the biggest US companies, fell roughly 2.4% on Monday. The Dow Jones Industrial Average also dropped 2.4%, while the Nasdaw is down more than 2.5%.
Since the start of the year, the three major indexes have fallen by around 12% (S&P), 10% (Dow Jones) and 18% (Nasdaq), the BBC reports.
Monday also saw the dollar index fall to its lowest level since 2022, and interest rates on US government bonds continued to rise on Tuesday.
All of this comes in the wake of Trump sending global stock markets into turmoil with his ‘Liberation Day’ tariffs.
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