Trump's criticisms of the Fed chair lead to stock drop, gold surge, dollar slide

From Yahoo Finance: 2025-04-20 21:38:00

Major U.S. stock indexes dropped as Trump’s criticisms of the Federal Reserve chair rattled investors. Safe-haven assets like gold and the Swiss franc surged. Trump’s repeated calls for lower interest rates fueled concerns about Fed independence and market stability.

The Sino-U.S. trade rift deepened as Beijing warned against deals with the U.S. at China’s expense. The Dow fell 2.48%, the S&P 500 2.36%, and the Nasdaq 2.55%. The S&P 500 closed 16% below its record high, nearing bear market territory.

Gold hit all-time highs, the dollar index slid to a three-year low, and the euro rose against the dollar. Longer-dated U.S. Treasury yields rose amid escalating attacks on the Fed chair. Oil prices fell over 2% as U.S.-Iran talks progressed, impacting demand concerns.

Investors fear instability as Trump’s tariffs and attacks on the Fed chair create uncertainty. Market turmoil led to sharp declines in major stock indexes. Gold prices soared, the dollar tumbled, and Treasury yields rose. Oil prices fell on progress in U.S.-Iran talks, adding to market unease.

Read more: US stocks, dollar slide; Trump’s attacks on Fed chair fuel anxiety