Stock market and US bonds sink amid Trump's trade war and Fed criticism
The stock market experienced more losses on Monday. It follows several bumpy weeks on Wall Street amid President Donald Trump’s trade war and his criticism of the Federal Reserve.U.S. government bonds and the value of the dollar, which typically strengthen during turbulent times, also sank. Experts say this reflects uncertainty around what are typically considered some of the world’s safest investments.It comes as Trump once again targeted Federal Reserve Chair Jerome Powell on social media Monday. “With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump wrote on Truth Social. The central bank is designed to operate independently from political influence to stabilize prices and the job market. The Fed has paused interest rate cuts for now, in part to evaluate the fallout of Trump’s tariffs, which Powell predicts will lead to higher inflation and slower economic growth.Trump defended his policies while speaking to reporters at the White House Easter Egg Roll.”The economy is very good, we don’t have inflation, energy is down at the lowest it has been in years,” Trump said. “There is a little transition and that is going to happen, but ultimately we will be the strongest we have ever been as a nation.”Those comments come as China and the United States remain locked in a trade war, with neither side budging on triple-digit tariffs. Trump has also imposed tariffs on other countries, but some of his steepest “reciprocal” rates are currently on pause. Beijing issued a new warning on Monday to other countries that are currently negotiating with the Trump administration, threatening retaliation if new trade deals negatively impact China.
The stock market experienced more losses on Monday. It follows several bumpy weeks on Wall Street amid President Donald Trump’s trade war and his criticism of the Federal Reserve.
U.S. government bonds and the value of the dollar, which typically strengthen during turbulent times, also sank. Experts say this reflects uncertainty around what are typically considered some of the world’s safest investments.
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It comes as Trump once again targeted Federal Reserve Chair Jerome Powell on social media Monday.
“With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump wrote on Truth Social.
The central bank is designed to operate independently from political influence to stabilize prices and the job market. The Fed has paused interest rate cuts for now, in part to evaluate the fallout of Trump’s tariffs, which Powell predicts will lead to higher inflation and slower economic growth.
Trump defended his policies while speaking to reporters at the White House Easter Egg Roll.
“The economy is very good, we don’t have inflation, energy is down at the lowest it has been in years,” Trump said. “There is a little transition and that is going to happen, but ultimately we will be the strongest we have ever been as a nation.”
Those comments come as China and the United States remain locked in a trade war, with neither side budging on triple-digit tariffs.
Trump has also imposed tariffs on other countries, but some of his steepest “reciprocal” rates are currently on pause.
Beijing issued a new warning on Monday to other countries that are currently negotiating with the Trump administration, threatening retaliation if new trade deals negatively impact China.