U.S. stock markets took a significant hit on Monday after President Donald Trump renewed his criticism of Federal Reserve Chair Jerome Powell. The comments sparked fresh concerns over the central bank’s independence, leading to a market downturn.
The Dow Jones Industrial Average dropped 971.82 points, or 2.48%, closing at 38,170.41. The S&P 500 fell 124.50 points, or 2.36%, to 5,158.2. The Nasdaq Composite Index decreased by 415.55 points, or 2.55%, ending at 15,870.9.
President Trump’s remarks reignited investor worries about potential interference in monetary policy. Analysts say that uncertainty over the central bank’s direction could lead to market volatility.
‘Investors are reacting to the possibility that the Federal Reserve might face pressure in its decision-making process,’ said an analyst at a major investment firm. ‘Market stability relies heavily on confidence in independent institutions.’
The Federal Reserve, responsible for setting U.S. monetary policy, has been a frequent target of criticism from President Trump, who has previously called for lower interest rates to boost economic growth.
Global markets are keeping a close eye on developments, as shifts in the U.S. economy often have worldwide implications.
