Market Turmoil: Trump's Criticism of Fed Chair Shakes Investor Confidence

U.S. stocks fell sharply on Monday after President Trump's renewed criticism of Federal Reserve Chair Jerome Powell raised concerns about the central bank's independence. Trump's comments fueled fears of monetary policy manipulation, destabilizing market confidence amid ongoing trade tensions.

On Monday, Wall Street's primary indexes plummeted to their lowest in over a week following U.S. President Donald Trump's intensified criticism of Federal Reserve Chair Jerome Powell. Trump's remarks on Truth Social suggested an immediate interest rate cut to evade economic slowdown, amplifying doubts about the Federal Reserve's independence.

The criticism has exacerbated anxieties over the central bank's ability to form an independent monetary policy, crucial for investor confidence in U.S. markets, which is already shaky due to trade tariffs. The S&P 500 fell by 3.13%, the Nasdaq Composite by 3.42%, and the Dow Jones by 2.94% during thin trading caused by the Easter holiday.

Financial experts like Jack Ablin of Cresset Capital and Jamie Cox of Harris Financial Group express concerns over possible rate cuts amidst rising inflation and stalled trade negotiations, emphasizing potential overvaluation and significant equity vulnerability.

(With inputs from agencies.)