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Did the "triple kill" of stocks and bonds in the United States stem from the market's doubts about the independence of the Federal Reserve?

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2025-04-21 15:48:57
On April 21, the US stock market plummeted, and US President Trump continued to attack Powell on Monday, calling on the Federal Reserve chairperson to cut interest rates. There are growing signs that Trump's trade war is pushing the US economy into recession. The dollar fell along with long-term US Treasury bonds. Trump said on his social media site that he is in favor of "pre-emptive interest rate cuts" and willfully called the Federal Reserve chairperson a "loser". Since last week, Trump has "bombarded" Powell one after another, which has raised the question: Can the Federal Reserve remain independent and free from political influence? This is about people's confidence in the US financial marekt. "The market doesn't want the independence of the Fed challenged," said Joe Saluzzi, co-manager of institutional trading. "The market can at least try to predict what an independent Fed would do. If the Fed's independence is challenged, there could be more volatile [unpredictable] decisions. The market doesn't like unpredictability."
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