U.S. stocks took a hit on Monday, with the S&P 500 tumbling 3% after President Donald Trump renewed his attacks on Federal Reserve Chairman Jerome Powell. Trump pressured Powell to lower interest rates, a move he believes would boost the economy. This comes at a time when markets are already grappling with the effects of Trump's own tariff policies, creating a climate of economic uncertainty.
Analysts suggest that the President's continued criticism of the Federal Reserve undermines its independence and creates instability in the financial markets. The Federal Reserve is tasked with maintaining stable prices and maximum employment, and traditionally operates independently of political pressure.
Lowering interest rates can stimulate economic growth by making it cheaper for businesses and individuals to borrow money. However, some economists worry that excessively low rates can lead to inflation and other economic problems. The market's reaction reflects investor concern about the potential consequences of the President's actions on monetary policy and the overall economic outlook.
S&P 500 Drops as Trump Criticizes Fed's Powell
The stock market experienced a significant decline on Monday, with the S&P 500 falling sharply. This drop occurred as President Trump publicly criticized Federal Reserve Chair Jerome Powell, urging lower interest rates. The market is already facing uncertainty due to the President's tariff policies. This combination of factors contributed to investor anxiety and the subsequent market downturn.
Source: Read the original article at NBC