President Trump’s continued attacks on Federal Reserve Chair Jerome Powell sent shockwaves through the stock market this week. The Fed decided to keep interest rates steady, a move that angered the former president.
Trump’s Outrage
Trump blasted Powell on social media, calling him “an American disgrace” and claiming his actions are costing the country billions. He argued the Fed should lower interest rates significantly, citing Europe’s rate cuts as a comparison. He even suggested Powell is “one of the dumbest, and most destructive, people in Government.”
Market Reaction
The markets reacted negatively to Trump’s comments and the Fed’s decision. Here’s a snapshot of the losses:
- S&P 500: Down slightly in the past day, and down about 0.6% over the past five days.
- Nasdaq Composite: Roughly unchanged in the past 24 hours, but down 0.55% over the past five days.
- Dow Jones Industrial Average: Down 0.1% in the past day and 1.29% over the past five days.
Powell’s Response
Powell recently met with Trump, but according to a statement released by the Fed, they did not discuss interest rate expectations. The Fed emphasized that its decisions are based solely on economic data and its mandate to maintain maximum employment and stable prices, independent of political pressure.