Dow Jones Faces Worst April Since 1932 Amid Trump's Criticism of Fed Chair Powell

The US stock markets are experiencing significant pressure following recent criticisms from President Donald Trump aimed at Federal Reserve Chair Jerome Powell. Investors are increasingly unsettled, leading to sharp declines across major indices on Wall Street.

On Easter Monday, the Dow Jones Industrial Average dropped 2.5%, closing at 38,170.41 points, a significant decline of almost 972 points. According to reports from the Wall Street Journal, if the Dow does not reverse its course, it is on track for its worst April performance since 1932.

In a notable move, President Trump declared April 2nd as Liberation Day, imposing widespread tariffs of 20% on numerous trading partners, many of which have since been suspended.

Investor concerns regarding potential disruptions in international trade have heightened market volatility, with the Nasdaq 100, which is heavily weighted with US technology stocks, also falling by 2.5% to 15,870.90 points. The broader S&P 500 index, meanwhile, saw a decrease of 2.4%, closing at 5,158.20 points and marking its sixth drop of more than 1.5% this month, the highest frequency of such declines since June 2022.

As a reflection of growing uncertainty, the US dollar has weakened, with the dollar index hovering around 98.39, close to a three-year low of 97.92 reached earlier this week.

The recent market turmoil has been fueled by Trump's continued verbal attacks on Powell, urging for a reduction in interest rates. Trump has labeled Powell as 'Mr. Too Late' and 'a big loser,' blaming him for a perceived slowdown in the US economy due to the Fed's reluctance to lower rates as Trump desires.

Powell has previously warned that the tariffs imposed by Trump could lead to increased prices and slower economic growth in the US, indicating that it might not yet be the appropriate time for rate cuts.

Trump's economic advisor, Kevin Hassett, has mentioned that the President is considering whether he can remove Powell, who is set to serve as Fed Chair until May 2026. Under a Supreme Court ruling from the 1930s, a president cannot dismiss a Fed chair without just cause.

In Europe, the DAX index also felt the pressure, experiencing a peak decline of 0.7% to 21,064 points. The MDAX index of mid-sized companies fell by 0.4%, while the EuroStoxx index decreased by 0.8%. Among the biggest losers in the DAX was Siemens Energy, which dropped by 4% after seeing a substantial gain of 10% just days earlier.

Conversely, stocks such as Commerzbank and Bayer saw gains, climbing by 2.2% and 1.8%, respectively.

In a flight to safety, investors have turned to gold, which reached a new record high of $3,500 per ounce, reflecting a rise of up to 2.2%. Year-to-date, gold prices have surged over 30%, with market analysts highlighting this trend as indicative of growing nervousness among investors.

Market experts warn that if Trump's criticisms result in Powell's dismissal and subsequent political interference in monetary policy, it could spell disaster for the Wall Street and potentially influence other global markets as well.