Markets took a steep dive on Monday as President Donald Trump intensified his attacks on Federal Reserve Chair Jerome Powell for refusing to cut interest rates, just as confidence in the economy continued to weaken amid ongoing tariff concerns. The sharp drop in equities came after Trump lashed out at Powell once again on social media, blaming him for the economic slowdown and demanding immediate action.
In a post on Truth Social, Trump referred to Powell as “Mr. Too Late” and called him “a major loser,” urging the central bank to slash interest rates without delay. “There can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump wrote Monday morning.
By late morning, the Dow Jones Industrial Average had dropped over 940 points, sliding more than 2.4 percent. The S&P 500 was down by more than 2.5 percent, while the Nasdaq Composite fell close to 2.9 percent, adding to growing concerns over the state of the markets.
The decline followed several weeks of volatility, much of it triggered by Trump’s escalating trade war. While there was a brief recovery after he announced a 90-day pause on most tariffs, the overall trend has been negative. Over the past month, the Dow has shed more than 9 percent of its value, with the S&P 500 down 9.2 percent and the Nasdaq down over 11 percent.
Trump’s frustration has been building, particularly with Powell’s refusal to respond to inflationary concerns tied to the administration’s aggressive trade stance by lowering rates. The president and his economic advisers have floated the idea of removing Powell from his leadership position, even though the Federal Reserve is an independent institution designed to operate free from political influence.
Last week, National Economic Council Director Kevin Hassett acknowledged that the White House is “studying the matter” of Powell’s removal, though legal experts point out that Trump likely lacks the authority to fire him as a Fed governor. Still, Trump remains publicly fixated on ousting Powell. “Powell’s termination cannot come fast enough!” he wrote in another post.
On Monday, Trump claimed that “preemptive cuts” were being recommended by many, echoing his call for immediate action to lower borrowing costs. Powell, however, has repeatedly warned that the administration’s tariff policies are contributing to inflation while simultaneously dragging down growth a combination that risks pushing the economy into stagflation.
“The level of the tariff increases announced so far is significantly larger than anticipated,” Powell said last week. “The same is likely to be true of the economic effects, which will include higher inflation and slower growth.”
Investors, already rattled by uncertainty, are uneasy with the increasingly public conflict between the White House and the Federal Reserve. Market analysts say that any serious move by Trump to push Powell out of the role before his term ends next year would likely further damage investor confidence and deepen the market selloff.