Trump's Fed Clash: Markets and Independence on Edge

U.S. markets face turbulence amid President Trump's critique of Fed Chair Jerome Powell, raising concerns over the central bank's independence and trade tensions. Stocks fell, and gold rose as a safe haven. Investors eye economic uncertainty, impending earnings, and key policy decisions while trade tensions persist.

U.S. financial markets braced for a lower opening on Monday after renewed criticism from President Donald Trump targeted Federal Reserve Chair Jerome Powell. The attack has sparked investor concerns about the Fed's independence, adding to the existing anxiety around the ongoing trade war.

White House economic adviser Kevin Hassett revealed that President Trump is contemplating whether he can dismiss the Fed chair, following Trump's remarks that Powell's removal "cannot come fast enough." This has intensified worries about the central bank's autonomy in monetary decisions within the world's largest economy, further affecting investor confidence already shaken by significant changes in trade policies.

Dow, S&P 500, and Nasdaq E-minis experienced losses premarket, while gold miners benefited as the precious metal's value increased, indicating a rush to safe-haven assets. The market is also reacting to tariff concerns, magnifying the economic uncertainty that has led to a drop in the S&P 500 index. Tech giants Tesla and Alphabet are gearing up to report earnings amid this volatile backdrop.

(With inputs from agencies.)