Trump Vs Fed Triggers Market Mayhem: Dollar Plunges, Wall Street Bleeds, Gold Hits Record High

Trump’s attack on Fed Chair Powell sends U.S. stocks tumbling, dollar hits 3-year low, and gold surges as investors flee to safe-haven assets amid growing uncertainty. U.S. markets were gripped by turmoil on Monday after President Donald Trump launched yet another scathing attack on Federal Reserve Chair Jerome Powell, triggering a sharp selloff in equities and a dramatic slide in the U.S. dollar. As fears over the Fed’s independence grew louder, safe-haven assets soared and investor nerves frayed.

Trump, speaking on Monday, doubled down on his criticism of Powell and warned that the U.S. economy could slow down unless interest rates are cut “immediately.” The rhetoric escalated further as White House economic adviser Kevin Hassett hinted on Friday that the administration would consider “studying” Powell’s position—reviving speculation about a potential shake-up at the Fed.

Stocks Tumble 
The reaction was swift and brutal on Wall Street. The Dow Jones Industrial Average dropped 937 points, or 2.39%, to close at 38,205.01. The S&P 500 fell 128 points (2.43%) to 5,154.25, while the Nasdaq Composite slid 446 points (2.75%) to 15,839.28. The U.S. dollar was one of the day’s biggest casualties. The dollar index tumbled to 97.923, a level not seen since March 2022. The greenback fell 1.07% against the Swiss franc, hitting a 10-year low. The euro surged past $1.15, while the yen strengthened to 140.78 against the dollar. With fears mounting over U.S. monetary credibility, demand for traditional safe havens spiked.

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Gold Rockets to All-Time High
Gold prices soared to a new record high of $3,424.25 per ounce, before easing slightly to $3,414.91, up 2.6% on the day. The Swiss franc also rallied as investors pulled out of risk assets. Surprisingly, cryptocurrencies saw a risk-haven bounce too. Bitcoin jumped 3.88% to $88,384, while Ethereum rose 3.07% to $1,638, reflecting a broader search for dollar alternatives.

Treasury Yields Rise
Despite the broader risk-off mood, the yield on benchmark 10-year U.S. Treasury notes rose to 4.346%, up 1.9 basis points. Analysts say the move reflects confusion—whether the Fed will hold the line or bow to mounting political pressure.
Adding to the volatility, China lashed out on Monday, accusing Washington of “abusing tariffs” and warning other countries against aligning economically with the U.S. Trump’s aggressive trade posture has unsettled global investors for weeks, and the latest comments have reignited fears of a full-blown trade war escalation.

With European markets closed for Easter Monday and some global desks still understaffed post-holiday, liquidity was thinner than usual—amplifying price swings. MSCI’s global stock index fell nearly 1%, and investors are now nervously eyeing upcoming earnings reports from tech giants like Alphabet, which could provide the next major market trigger.