Trump Criticizes Fed’s Powell as Inflation Fears Trigger Market Slide
Former U.S. President Donald Trump has publicly criticized Federal Reserve Chair Jerome Powell, labeling him “Mr. Too Late” and “big loose” in a post on his Truth Social platform. Trump urged Powell to instantly lower U.S. interest rates, claiming that there is “virtually no inflation.”
Trump’s remarks come as markets reacted sharply to concerns about rising inflation and its potential impact on interest rate policy. the public rebuke raises questions about the Fed’s independence amidst political pressure.
Fed Grapples with Inflation Concerns Amid Trade Policy Uncertainty
While the latest data shows that U.S. inflation dipped to 2.4% in March 2025—a level not seen since March 2021—the Federal Reserve remains cautious.Powell warned the Economic club of Chicago on April 15th that a temporary increase in inflation was likely. He also noted the potential for more persistent inflationary effects stemming from the Trump administration’s trade and tariff policies, adding further complexity given already low economic growth rates.
Economists at the Brookings Institution note that tariffs, while intended to protect domestic industries, often translate to higher prices for consumers.“Increased tariffs can disrupt supply chains and ultimately lead to inflationary pressures, negating any potential benefits,” said Dr. louise Sheiner,policy director for the Hutchins Center on Fiscal and Monetary Policy at Brookings,in a recent analysis.
Market Turmoil Follows Trump’s Criticism
Trump’s renewed verbal attack on Powell on Monday, april 21st, appears to have further unsettled trading on U.S. stock exchanges. The public nature of the criticism has fueled concerns about the Fed’s long-term independence and its ability to resist political influence when setting monetary policy.
According to CNBC, market participants are also concerned about the lack of progress in global trade discussions initiated by Trump. The Dow Jones Industrial Average tumbled more than 1,200 points, a 3.1% drop.
Market Performance Snapshot (April 21, 2025)
- Dow Jones: Down 3.1% (over 1,200 points)
- S&P 500: down 3.3%
- Nasdaq Composite: Down 3.6%
- Tesla: Down 7%
- Nvidia: Down 6%
- Amazon, meta, AMD: Each down approximately 4%
Tech Stocks Lead the Decline; Gold Reaches Record High
High interest rates are generally favorable for savers but can be detrimental to riskier investments, such as technology stocks. The Nasdaq Composite suffered the most notable losses during the stock market downturn on April 21st, with major tech companies experiencing significant declines.
Amid the market volatility, gold—often seen as a safe-haven asset—reached an all-time high of $3,400 per ounce. Cryptocurrencies, which have historically mirrored the movements of tech stocks, remained relatively stable, with Bitcoin listing at $87,500, a 3% increase from the previous day.
“Investors often flock to gold during times of uncertainty, viewing it as a store of value that can weather economic storms,” stated a recent report by Goldman Sachs.
