- Trump criticizes Powell, warns of economic delay, unless the interest rates are reduced.
- This year, experts predict several reductions from Fed Rate, despite the resistance of Powell.
On April 21, President Donald Trump criticized the Federal Reserve chairman Jerome Powell and called him a “great loser” while warning about potential economic decline.
Trump takes a shot on Powell
In one after On the Truth Social, Trump emphasized that unless Powell immediately takes action to reduce interest rates, the US economy could be delayed.
He argued that, with prices in the decline, inflation seems unlikely, but a recession can be imminent if the Federal Reserve does not adjust its policy.
Said Trump,
“With these costs trending so beautifully down, exactly what I predicted that they would do, there can be almost no inflation, but there can be a delay in the economy, unless the Lord is too late, a large loser, the interest rates now lower.”
Impact on US shares and crypto
After Trump’s comments, the stock markets in the United States closed in the red, with the S&P 500 with 2.4%, the Nasdaq slips 2.5%and the Dow Jones lost almost 1,000 points, a decrease of 2.5%.
This marks a considerable decline, with the S&P 500 now by more than 12% to date and the Nasdaq that falls almost 18% in the midst of a retreat of technical shares.
Nevertheless, the cryptocurrency market remained resilient, making it stable at a total market capitalization of $ 2.83 trillion.
Bitcoin [BTC] Played a key role in supporting the market and reached a highlight of $ 88,500 on 22 April.
While the global crypto market capitalization saw a slight plunge Up to $ 2.75 trillion continued to show Bitcoin and traded at $ 88.175 after an increase of 0.75% in the last 24 hours, according to Mint market cap.
That said, the crypto anxiety and greed index had previously reached 31, which reflects a strong fear in the market, a sentiment that has continued to exist since February.
From the last update, however, the index stand On 47, which points to a shift to a neutral market sentiment.
Can Trump fire fire?
Trump’s recent attacks on Jerome Powell, which he appointed during his first term, speculated on the potential legal assets of the president to remove the chairman of the Federal Reserve before his term is concluded in May 2026.
Powell has stuck firmly that the president cannot dismiss him according to current legislation.
If Trump tries such a movement, this can lead to a sharp sale in US stock markets, according to Krishna Guha, vice-chairman of Evercore Isi, who said On “squawk box”,
“If you start raising questions about the independence of the Federal Reserve, you raise the bar higher for the Federal Reserve.
He added,
If you actually try to remove the chairman of the Federal Reserve, I think you would see a serious reaction in markets with a higher return, dollars lower and shares that are sold out. ”
While Powell is now opposed to calls from Trump to lower interest rates, many experts believe that the FED will still implement different tariff reductions this year.
Citigroup, for example, predicts a speed reduction in June and, by the end of 2025, expects a total of 125 basic points in cuts.
