U.S. markets sank Monday after Donald Trump lashed out at Fed Chair Jerome Powell, calling him “Mr. Too Late” and urging once again the central bank to slash interest rates.
The Dow Jones Industrial Average tumbled roughly 1,200 points, or 3% as trading drew to a close. The S&P 500 slid 3.1%, while the Nasdaq Composite fell 3.4%, led by declines in major tech names.
The downturn accelerated in early afternoon trading following a Truth Social post in which Trump branded Powell “Mr. Too Late” and “a major loser,” accusing him of risking a recession unless the Fed moves immediately to cut interest rates.
“Preemptive Cuts” in Interest Rates are being called for by many,” Trump wrote. “With Energy Costs way down, food prices (including Biden’s egg disaster!) substantially lower, and most other ‘things’ trending down, there is virtually No Inflation.”
“With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation,” he added, “but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW.”
Over the weekend, Trump had hinted at the possibility of removing Powell before his term expires in May 2026 — a notion confirmed Monday as “under review” by White House economic adviser Kevin Hassett.
The dollar fell and safe-haven assets rallied as investors reacted to the escalating pressure on the Fed and deepening trade tensions. The ICE U.S. Dollar Index – which tracks the greenback against a basket of six major currencies – dropped to 97.92, its lowest since March 2022. Gold jumped above $3,400 an ounce to set a new nominal record. Benchmark 10-year Treasury yields similarly rose to 4.398% as investors rushed to sell off government bonds.
Tesla slumped over 7% on renewed fears over supply chain snags tied to the administration’s tariff stance. Nvidia lost around 6%, Amazon shed roughly 4%, and Meta was down over 3%. Caterpillar, often viewed as a proxy for the broader industrial economy, slipped 3%.
Adding to market stress were renewed frictions with Beijing. Earlier this month, the White House announced a tiered tariff system ranging from 10% to 49%, targeting countries with large trade surpluses. But after a sharp market selloff, the plan was shelved in favor of a flat 10% tariff on all trading partners — except China — for a 90-day window, as Washington seeks to negotiate new bilateral deals.
China, which has been subject to a 145% duty since April 9, was notably excluded from the temporary reprieve. Beijing retaliated with its own sweeping countermeasures, slapping a 125% tariff on virtually all U.S. imports starting April 11. On Monday, China’s Ministry of Commerce issued a warning to other countries, urging them not to strike trade deals with Washington that would undermine Chinese interests.
“China firmly opposes any party reaching an agreement at the expense of China’s interests,” the ministry said, vowing “resolute countermeasures” in response. “If international trade reverts to the law of the jungle — where the strong prey on the weak — eventually all countries will become victims.”
Since April 2, dubbed “Liberation Day” by Trump when he unveiled his new tariff framework, the S&P 500 has lost more than 8%, the Nasdaq nearly 10%, and the Dow about 9%.
