Trump's attack on the Federal Reserve triggers panic in the markets and Wall Street indicators collapse. Trump fires at Powell and the market bleeds. In an unprecedented attack, U.S. President Donald Trump described Federal Reserve Chairman Jerome Powell as "Mr. Too Late, Big Loser," demanding an immediate cut in interest rates. The result was shocking: a sharp collapse in U.S. markets, as a wave of collective selling wiped out billions in market value in minutes.
A Red Hurricane Sweeps Wall Street
- S&P 500 plummets 3% in one day.
- Nasdaq loses 3% also under technology pressure.
- Dow Jones slides more than 1200 points (its biggest loss in months).
- Tesla takes a hard hit: 7% loss.
- Nvidia (chip giant) crashes 5.8%.
- Amazon loses 3.8% of its value.
Why this collapse? Shock Analysis
1. Dangerous rhetoric: Trump's attack raised investors' fears of politicizing the Federal Reserve and threatening its independence.
2. Inflation fears: Despite Trump's call for a rate cut, the market sees that the Fed may be forced to raise them again.
3. Flight from risk: Investors are selling their assets out of fear of the impact of politics on the economy.
- If Trump continues his attack: the market may lose confidence in the Fed's policy, increasing volatility.
- Powell's intervention: Any sudden statement from him could calm the market or fan the flames.