Key Takeaways
- U.S. stock indexes fell by around 2.5% following Trump's criticism of the Fed.
- Trump urged the Fed to cut rates, calling Powell a 'major loser.'
- Bitcoin hit a four-week high of $88,500 as markets reacted.
U.S. stock markets fell sharply on April 21 as former President Donald Trump ramped up criticism of Federal Reserve Chair Jerome Powell, renewing calls for interest rate cuts.
The S&P 500 dropped 2.4%, the Nasdaq slipped 2.5%, and the Dow Jones fell by nearly 1,000 points, continuing a downward trend in 2025.
The S&P 500 has now declined over 12% year-to-date, while the Nasdaq is down almost 18%.
Trump’s criticism
In a post on Truth Social, Trump urged the Fed to act.
He wrote:
‘Preemptive Cuts’ in Interest Rates are being called for by many. With Energy Costs way down, food prices […] substantially lower, and most other ‘things’ trending down, there is virtually No Inflation.
Trump also labeled Powell “Mr. Too Late” and a “major loser,” intensifying his push for a rate cut.
Fed’s response
Powell previously warned that trade tariffs could trigger stagflation—a mix of high prices and slowing growth.
Trump responded by calling for Powell’s dismissal, saying:
His termination cannot come fast enough.
Market expectations
Despite the political tensions, the Federal Reserve is expected to hold interest rates steady at its May 7 meeting, with markets pricing in only a 13% chance of a cut, according to CME Fed Watch.
Currency & crypto impact
The U.S. Dollar Index fell below 98 on April 21, its lowest point in three years.
Bitcoin, however, surged to a four-week high of $88,500, helping keep the digital asset market’s capitalization at $2.83 trillion.
