Stocks fall as Trump calls Fed chair ‘a major loser’ – Daily Business

Stock markets are poised to resume their rollercoaster ride after Donald Trump sent Wall Street into tailspin by calling the chair of the Federal Reserve ‘a major loser”.

The US president accused the central bank chief Jerome Powell of failing to cut interest rates “pre-emptively” to help boost the economy.

“There can be a SLOWING of the economy unless Mr Too Late, a major loser, lowers interest rates, NOW,” he wrote in a social media post.

Mr Trump said Mr Powell’s termination “can’t come fast enough”, suggesting he intends to replace Mr Powell when his term expires in 2026 or possibly fire him. However, this would not only challenge the independence of the bank, it would also be illegal.

The S&P 500, which tracks 500 of the biggest US companies, and the Dow Jones Industrial Average plunged in early trade.

Mr Trump’s criticism of Mr Powell began during his first term in office and he has been angered by the banker’s warnings that the president’s import taxes would slow drown growth and drive up inflation.

Analysts say it’s the President’s tariffs that have caused the current turmoil, including a stock market sell-off and fears of economic recession.

The dollar and US government bonds have not escaped the recent turbulence. Interest rates on US government debt rose, as investors demanded higher returns for holding Treasuries

Nigel Green, CEO of financial adviser deVere Group, said investors are bracing for a standoff.

“This isn’t just a disagreement over timing,” he said. “It’s a power struggle between fiscal force and monetary independence. Markets are reacting. And they should be.”