The U.S. financial market plummeted on Monday while cryptocurrency prices stayed tuned, as U.S. President Donald Trump increased public disagreements with Federal Reserve Chairman Jerome Powell, The Guardian and other news outlets reported on Tuesday.
The clash between the country's highest political and monetary leaders has shaken traditional markets, but surprisingly, cryptocurrencies were not affected.
Stock Market Plummets After President's Speech
U.S. stock indices closed sharply lower on April 21, with significant losses in major benchmarks. The S&P 500 fell 2.3%, the tech-dominated Nasdaq lost 2.4%, and the Dow Jones Industrial Average plummeted nearly 1,000 points, down 2.4%, based on data from Google Finance.
Trump Calls for Interest Rate Cuts and Criticizes Fed Chairman
Behind the market fluctuations is the increasingly fierce clash between President Trump and Federal Reserve Chair Powell. Trump used the Truth Social platform on April 21 to post that "Many are calling for rate cuts ahead."
The president believes that cutting interest rates is reasonable because "Energy costs have dropped significantly, food prices have decreased considerably, and most other 'things' are trending down," asserting that "there is virtually no inflation."
Trump has repeatedly criticized Powell, calling him "Too late and wrong" for not cutting interest rates, which remain at 4.5%.
Tensions escalated after Powell warned that Trump's tariffs could lead to stagflation, prompting the president to call for his dismissal, saying "his firing cannot happen fast enough."
The dollar weakens while cryptocurrencies show strength
While the political conflict continues, the US dollar index (DXY), which tracks the greenback against other major currencies, has dropped below 98 on April 21, marking a three-year low.
The latest data shows that this trend occurs after the dollar has decreased in value by more than 10% since the beginning of 2025.
In stark contrast to traditional markets, cryptocurrencies have maintained their weekend gains. The total market capitalization of cryptocurrencies, based on TradingView data, remains stable at $2.74 trillion.
Industry data warns against political intervention.
Cryptocurrency entrepreneur Anthony Pompliano has warned about the president's intervention in the leadership of the Federal Reserve.
In the video uploaded to X on April 18, Pompliano claimed that he does not believe Trump should get involved and unilaterally fire the Fed chairman.
He added that dismissals due to policy disagreements would put the country in a dangerous position: "I think that when disagreements lead to dismissals, that is not an issue we want to solve."
Market experts believe that the central bank will stay tuned on interest rates at the next meeting on May 7. According to data, the interest rate market currently only forecasts a 13% probability of a rate cut at that meeting.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Trump Attacks the Fed, Wall Street Shakes, But Bitcoin Rises in Strength
The U.S. financial market plummeted on Monday while cryptocurrency prices stayed tuned, as U.S. President Donald Trump increased public disagreements with Federal Reserve Chairman Jerome Powell, The Guardian and other news outlets reported on Tuesday. The clash between the country's highest political and monetary leaders has shaken traditional markets, but surprisingly, cryptocurrencies were not affected. Stock Market Plummets After President's Speech U.S. stock indices closed sharply lower on April 21, with significant losses in major benchmarks. The S&P 500 fell 2.3%, the tech-dominated Nasdaq lost 2.4%, and the Dow Jones Industrial Average plummeted nearly 1,000 points, down 2.4%, based on data from Google Finance.
Trump Calls for Interest Rate Cuts and Criticizes Fed Chairman Behind the market fluctuations is the increasingly fierce clash between President Trump and Federal Reserve Chair Powell. Trump used the Truth Social platform on April 21 to post that "Many are calling for rate cuts ahead." The president believes that cutting interest rates is reasonable because "Energy costs have dropped significantly, food prices have decreased considerably, and most other 'things' are trending down," asserting that "there is virtually no inflation."
Trump has repeatedly criticized Powell, calling him "Too late and wrong" for not cutting interest rates, which remain at 4.5%. Tensions escalated after Powell warned that Trump's tariffs could lead to stagflation, prompting the president to call for his dismissal, saying "his firing cannot happen fast enough." The dollar weakens while cryptocurrencies show strength While the political conflict continues, the US dollar index (DXY), which tracks the greenback against other major currencies, has dropped below 98 on April 21, marking a three-year low. The latest data shows that this trend occurs after the dollar has decreased in value by more than 10% since the beginning of 2025.
In stark contrast to traditional markets, cryptocurrencies have maintained their weekend gains. The total market capitalization of cryptocurrencies, based on TradingView data, remains stable at $2.74 trillion. Industry data warns against political intervention. Cryptocurrency entrepreneur Anthony Pompliano has warned about the president's intervention in the leadership of the Federal Reserve. In the video uploaded to X on April 18, Pompliano claimed that he does not believe Trump should get involved and unilaterally fire the Fed chairman. He added that dismissals due to policy disagreements would put the country in a dangerous position: "I think that when disagreements lead to dismissals, that is not an issue we want to solve." Market experts believe that the central bank will stay tuned on interest rates at the next meeting on May 7. According to data, the interest rate market currently only forecasts a 13% probability of a rate cut at that meeting.