US Markets in Turmoil as President’s Clash with Powell Intensifies
The US stock market has been thrown into chaos as the President’s increasingly public feud with Federal Reserve Chairman, Jerome Powell, escalates. According to a recent report by the BBC, the President’s intensifying clash with Powell, whom he appointed to lead the Fed during his first term, has added to the market turmoil.
The S&P 500, which tracks 500 of the biggest US companies, plummeted roughly 2.4% on Monday, citing data from the BBC. This latest downturn has contributed to a 12% loss in value since the start of the year. The Dow Jones Industrial Average also suffered a significant blow, dropping 2.5% and losing about 10% of its value so far this year. Meanwhile, the Nasdaq fell more than 2.5% and is down roughly 18% since January. As the BBC reports, “The president’s intensifying clash with Powell, whom he named to lead the Fed during his first term, has added to the market turmoil.”
Typically considered safe assets in times of market turmoil, the dollar and US government bonds have not escaped the recent turbulence. The dollar index, which measures the strength of the dollar against a set of currencies including the Euro, fell to its lowest level since 2022 on Monday, as per BBC’s data. Interest rates on US government debt also rose, as investors demanded higher returns for holding Treasuries.
In times of economic uncertainty, investors often seek out so-called “safe-haven” assets. The price of gold has hit a new record high, crossing the $3,400 (£2,563) per ounce mark for the first time on Monday, as reported by the BBC. The precious metal is viewed as a safer place to put money during times of economic instability. As BBC notes, “The precious metal is viewed as a safer place to put money during times of economic uncertainty.”
The ongoing market volatility has raised concerns among investors and analysts. The President’s public criticism of Powell has sparked fears of a prolonged economic downturn. The BBC reports that the President’s comments have contributed to the market uncertainty, which has already been exacerbated by a range of economic factors.
In conclusion, the US stock market continues to experience significant turmoil as the President’s clash with Powell intensifies. The market instability has led to a flight to safe-haven assets, with gold prices reaching record highs. As the situation continues to unfold, investors and analysts will be closely monitoring the developments to gauge the potential impact on the economy. The BBC will continue to provide updates on this developing story.
Source: BBC
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