Dow, Nasdaq, S&P500 takes a beating as Donald Trump slams Fed chief over rate cut inaction

Markets reeled on April 21 as former President Donald Trump intensified his verbal offensive against Federal Reserve Chair Jerome Powell, blaming him for a slowing economy and demanding immediate rate cuts. The fresh political pressure, coupled with ongoing uncertainty over global trade talks, deepened investor jitters and triggered a sharp selloff on Wall Street.

The Dow Jones Industrial Average plunged 1,051.53 points, or 2.7%, while the S&P 500 dropped 2.8%. The tech-heavy Nasdaq Composite fared worse, losing 3.1%, in intra-day basis. The slide continues a broader decline since April 2, when Trump announced new tariffs on foreign imports. Since then, the S&P 500 has fallen over 8%, the Dow is down 9%, and the Nasdaq has slipped nearly 10%.

Currency and commodity markets echoed the turmoil. The dollar also slumped to a three-year low as trade tensions escalated, while gold prices surged past $3,400 an ounce, hitting record highs.

Amid the financial turbulence, Trump took to Truth Social to lambast Powell, accusing him of dragging his feet on interest rates. “Preemptive Cuts in Interest Rates are being called for by many. 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,” he posted.

He doubled down, calling Powell “Mr. Too Late, a major loser,” and warned that economic growth could stall without swift action. “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 also took a jab at Powell’s international peers, claiming the Fed chair lagged behind. “Europe has already ‘lowered’ seven times. Powell has always been ‘To Late,’ except when it came to the Election period when he lowered in order to help Sleepy Joe Biden, later Kamala, get elected. How did that work out?”

Speculation is growing over whether Trump could try to remove Powell before his term ends in 2026, a move that would further test the boundaries of central bank independence.