By The White House from Washington, DC
US stock indices experienced a decline, and the dollar index dropped to a three-year low on Monday, following President Donald Trump’s ongoing criticisms of the Federal Reserve Chair and the bank’s monetary policy, which unsettled investors.
Gold prices, considered a safe haven, reached a new record high, while the Swiss franc also appreciated. Meanwhile, benchmark US Treasury yields saw a slight increase.
On Monday, Trump reiterated his disapproval of Fed Chair Jerome Powell, asserting that the US economy could face a slowdown unless interest rates are reduced promptly.
White House economic adviser Kevin Hassett mentioned on Friday, during a period when many markets were closed, that Trump and his team would evaluate the possibility of dismissing Powell, following Trump’s harsh remarks about him on Thursday. These comments raised concerns regarding the Fed’s autonomy in determining monetary policy and the future of US assets.
Vail Hartman, a US rates strategist at BMO Capital Markets in New York, noted that Trump’s remarks about Powell are exerting pressure on US assets, including stocks and long-term Treasuries.
Chicago Federal Reserve President Austan Goolsbee expressed hope on Sunday that the United States is not heading towards a situation where the central bank’s ability to set monetary policy free from political influence is called into question.
Since implementing a series of rate cuts late last year, the Fed has maintained its benchmark policy rate within the range of 4.25 percent to 4.50 percent since December. The Dow Jones Industrial Average decreased by 937.33 points, or 2.39 percent, to 38,205.01; the S&P 500 fell by 128.08 points, or 2.43 percent, to 5,154.25; and the Nasdaq Composite dropped by 446.75 points, or 2.75 percent, to 15,839.28. Additionally, MSCI’s global stock index declined by 7.78 points, or 0.98 percent, to 785.64.
Most markets were closed on Friday, and several, particularly in Europe, continued their Easter Monday holiday, resulting in lower liquidity than usual. The dollar weakened against a range of currencies, dropping to 97.923, its lowest point since March 2022. It also reached a decade-low against the Swiss franc, while the euro briefly surpassed $1.15. The euro was last seen up 0.94 percent at $1.1498. The dollar declined by 0.98 percent against the Japanese yen, settling at 140.78, and fell 1.07 percent against the Swiss franc to 0.808.
In the cryptocurrency market, prices increased, with Bitcoin rising by 3.88 percent to $88,384.03 and Ethereum climbing 3.07 percent to $1,638.04. The yield on benchmark US 10-year notes increased by 1.9 basis points to 4.346 percent, up from 4.327 percent late Thursday.
Spot gold prices rose by 2.6 percent to $3,414.91 an ounce at 09:26 a.m. ET (1326 GMT), having reached a record high of $3,424.25 earlier in the session. The tariffs imposed by Trump have unsettled financial markets in recent weeks and remain a significant concern for investors.
On Monday, China accused Washington of misusing tariffs and cautioned other nations against entering into broader economic agreements with the United States that could be detrimental to them, escalating tensions in the ongoing trade conflict between the two countries.
First-quarter earnings reports from US companies are being released, with major firms like Alphabet expected to report this week. Companies and investors are navigating a tariff environment that is likely to continue evolving as the Trump administration engages in negotiations with various nations.
Oil prices experienced a decline, with US crude dropping 2.66 percent to $62.96 per barrel, while Brent crude fell 2.71 percent to $66.12 per barrel.
