Global markets tumble as Trump’s attacks on the Federal Reserve spark fears over U.S. economic stability. The dollar hits a 3-year low, gold soars to a record high, and investors rush to safe havens like the yen and Swiss franc.
Why Are Markets Panicking?
Financial markets are in turmoil after former U.S. President Donald Trump intensified his criticism of Federal Reserve Chair Jerome Powell, raising concerns about the central bank’s independence. Reports suggest Trump’s team is even exploring whether Powell can be fired—a move that could destabilize the U.S. economy.
U.S. Dollar Hits Three-Year Low
The U.S. dollar fell sharply, reaching a three-year low against major currencies like the euro, which rose 1.1% to $1.15. The Japanese yen strengthened to ¥140.7 per dollar, a seven-month high, while the Swiss franc hit a 10-year high at SFr0.8069 against the dollar. This drop in the dollar’s value reflects growing distrust in U.S. assets, fueled by Trump’s Fed criticism and his tariff policies.
Gold Prices Soar to Record High
As investors sought safety amid the uncertainty, gold prices surged over 1% to a new record of $3,393 per troy ounce. Gold is considered a safe-haven asset, meaning its value often rises when markets are unstable. In 2025, gold has already gained 26%, driven by global economic and geopolitical tensions.
Key Market Reactions (April 2025)
| Asset | Performance | Reason |
| U.S. Dollar | Hits 3-year low vs. euro | Loss of confidence in Fed’s independence |
| Gold | Record high: $3,370/oz (up 26% YTD) | Safe-haven demand |
| Japanese Yen | 7-month high vs. dollar | Investors flee to safety |
| Swiss Franc | 10-year high vs. dollar | Safe-haven surge |
| S&P 500 Futures | Down 0.75% | Fear of political interference in Fed |
How Trump’s Fed Criticism is Hurting Markets
Trump has repeatedly blamed Powell for keeping interest rates high, arguing that cuts are needed to boost the economy. However, experts warn that undermining the Fed’s independence could lead to:
- Higher inflation risks (if rates are cut too soon)
- Dollar collapse (as foreign investors lose trust)
- Stock market volatility (due to policy uncertainty)
Global Impact: Trade Wars Add to the Chaos
Trump’s aggressive trade policies, including tariffs on China and other nations, are also weighing on markets. Recent data shows:
- South Korea’s exports fell sharply, signaling global trade slowdown
- U.S.-China trade tensions remain unresolved
- Tech stocks (like Tesla & Alphabet) down sharply in 2025
What’s Next for Investors?
With the Fed’s credibility under threat, traders are bracing for more turbulence. Key events to watch:
- U.S. Earnings Reports (Tesla, Intel, Alphabet) – Will corporate profits hold up?
- Fed’s Response – Will Powell resist political pressure?
- Trade Talks – U.S.-China negotiations could ease or worsen tensions.
For now, investors are rushing to gold, the yen, and Swiss francs as safety plays, while dumping the dollar and U.S. stocks.
5 Key FAQs About the Market Crash
Why is the dollar falling?
The dollar is dropping because investors fear Trump’s attacks on the Fed could weaken its independence, making U.S. assets riskier.
How high can gold go?
Gold has surged 26% in 2025 and could keep rising if political and economic uncertainty continues.
Can Trump really fire the Fed Chair?
Legally, it’s unclear. The Fed is designed to be independent, but Trump’s threats alone are shaking confidence.
Which currencies are safest now?
The Japanese yen (JPY) and Swiss franc (CHF) are top safe havens, hitting multi-year highs.
Will U.S. stocks recover?
If Fed independence is maintained and trade tensions ease, stocks could rebound. But volatility will stay high in the short term.
Trump’s Fed criticism and trade wars are creating a perfect storm for markets. Investors should watch Fed policy, earnings reports, and global trade talks closely. For now, safety assets like gold and the yen are winning, while the dollar and U.S. stocks struggle.
