Trump Attacks Fed, Wall Street Shudders, Bitcoin Draws Strength

US monetary markets plunged Monday whereas cryptocurrency costs remained agency, as US President Donald Trump ramped up his public feud with Federal Reserve Chairman Jerome Powell, The Guardian and different information shops reported Tuesday.

The conflict between the nation’s highest political and financial leaders shook traditional markets to their core however left crypto surprisingly unscathed.

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Inventory Markets Plummet After Presidential Remarks

American inventory indices closed forcefully decrease on April 21, with broad losses at main benchmarks. The S&P 500 declined 2.3%, the tech-dominated Nasdaq misplaced 2.4%, and the Dow Jones Industrial Common plummeted by virtually 1,000 factors, down 2.4%, primarily based on Google Finance information.

JUST NOW: President Trump calls Jerome Powell a “main loser” and calls for rates of interest lowered “now” pic.twitter.com/rAM7CVmPw2

— Morning Brew (@MorningBrew) April 21, 2025

Trump Calls For Fee Cuts And Slams Fed Chair

Underlying the market volatility is a quickly intensifying conflict between President Trump and Federal Reserve Chairman Powell. Trump used his April 21 Truth Social discussion board to submit that “Preemptive Cuts in Curiosity Charges are being known as for by many.”

The President contended charge cuts are warranted as a result of “Vitality Prices [are] method down, meals costs [are] considerably decrease, and most different ‘issues’ [are] trending down,” asserting “there’s nearly No Inflation.”

Trump has repeatedly criticized Powell, calling him “Too late and fallacious” for not chopping rates of interest, which stay at 4.5%.

Tensions rose after Powell warned that Trump’s tariffs might trigger stagflation, prompting the president to demand his elimination, saying his “termination can’t come quick sufficient.”

Greenback Weakens Whereas Crypto Reveals Power

Because the political battle rages on, the US Greenback Index (DXY), which tracks the buck relative to different important currencies, dipped beneath 98 on April 21, recording a three-year low.

This follows a falling pattern that has had the greenback drop over 10% of its worth because the begin of 2025, newest information exhibits.

Bitcoin Unfazed Amid Political Turmoil

In stark distinction to conventional markets, cryptocurrencies have maintained their weekend positive factors. The entire cryptocurrency market capitalization, primarily based on TradingView information, remained regular at $2.74 trillion.

Bitcoin worth, in response to information from Coingecko, hit a four-week excessive of $88,428.

Why is the value of bitcoin flat? Ought to Trump hearth Jerome Powell? Will The US lose reserve forex standing?

I reply your questions pic.twitter.com/S7Q6hANR3H

— Anthony Pompliano (@APompliano) April 18, 2025

Trade Figures Warn Vs. Political Interference

Cryptocurrency businessperson Anthony Pompliano warned in opposition to presidential intervention within the Federal Reserve management.

In a video he uploaded on X on April 18, Pompliano declared that he doesn’t consider that Trump ought to are available in and unilaterally hearth the Fed chair.

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He additional said that coverage disagreement firings would lead the nation into perilous waters: “The place you might have a disagreement after which the firing, I feel that’s probably not the world that we wish to go into.”

Market consultants consider the central financial institution will maintain regular at its subsequent assembly on Could 7. In keeping with information, rate of interest markets now forecast solely a 13% likelihood of a charge discount at that session.

Featured picture from Chip Somodevilla/Getty Pictures. chart from TradingView