Dollar drops, stocks slide, but Bitcoin rallies as Trump targets Fed and Powell

• Trump criticizes Powell, warns of economic slowdown unless interest rates are reduced.
• Experts expect multiple discounts in the Federal Reserve this year, despite Powell’s resistance.

On April 21, President Donald Trump escalated his criticism of Federal Reserve Chairman Jerome Powell, describing him as a “great loser” while he was warning of a possible economic contraction.

Trump takes a blow to Powell

In a publication on the social truth, Trump stressed that unless he takes Powell immediate measures to reduce interest rates, the US economy may face slowdown.

He said that with low prices, inflation appears unlikely, but the recession may be imminent if the federal reserve does not modify its policies.

Trump said,

“With these costs go down well, just what you expected to do, there could be almost no enlargement, but there can be a slowdown in the economy unless the master has not yet missed, a great loser, and reduces interest rates, now.”

Impact on American stocks and encryption

After Trump’s comments, stock markets were closed throughout the United States in red, as the S&P 500 decreased by 2.4 %, the NASDAC exchange decreased by 2.5 %, and Dow Jones lost approximately 1000 points, a decrease of 2.5 %.

This represents a significant contraction, as the S&P 500 has now decreased by more than 12 % on an annual basis, and the NASDAC exchanges about 18 % amid a retreat from technical stocks.

Nevertheless, the cryptocurrency market remained flexible, holding steadily with the total market market of $ 2.83 trillion.

Bitcoin [BTC] He played a major role in supporting the market, reaching the highest level in four weeks at 88,500 dollars on April 22.

While the maximum global Crypto market witnessed a slight decrease to 2.75 trillion dollars, Bitcoin has continued to show strength, as it was circulated at $ 8,8175 after an increase of 0.75 % in the past 24 hours, according to Coinmarkcap.

However, the Crypto Fear and Greed index has previously reached 31, which reflects a strong fear in the market, a feeling that has continued since February.

However, as of the last update, the index is 47, indicating a transformation to the morale of the neutral market.

Can Trump shot Powell?

Trump’s recent attacks on Jerome Powell, who was appointed during his first term, sparked speculation about the potential legal ability of the president to remove the head of the Federal Reserve before the end of his term in May 2026.

Powell stated firmly that the president could not reject him under the current law.

If Trump tries to such a step, this may lead to sharp sales in American stock markets, according to Krishna Ghha, Vice President Evercore ISI, who He said on “Squawk box”,

“If you start raising questions about the independence of the federal reserve, you are raising the tape to reduce the federal reserve.

He added,

If you already try to remove the Federal Chairman, I think you will see a severe reaction in the higher returns markets, less than dollars and sell shares. ”

Now, as Powell has resisted Trump calls to reduce interest rates, many experts believe that the Federal Reserve will remain several price cuts this year.

Citigroup predicts, for example, a rate of reduction in June and a total of 125 basis points in discounts is expected by the end of 2025.