« Mr. too late »: Trump’s attack on Fed boss meets US exchanges

After a new attack by President Donald Trump, the US stock markets have come under a lot of pressure on central bank boss Jerome Powell. Trump again called for an interest rate reduction and described Powell as « Mr. too late » and a « big loose ».

Powell does not want to reduce interest risks after Trump’s customs circuit for the time being. At the same time, economists warn that a result of the trade conflict can be a slower economic growth or even a recession in the United States. In the meantime, lower interest rates could accelerate inflation.

Trump claimed that there is currently almost no inflation and the absence of interest rate reduction could brake. However, experts fear an inflation boost if companies should pass on the higher costs through Trump’s tariffs to consumers. With “Mr. too late”, Trump meanwhile alluded to criticism that Powell had been waiting for too long with interest rates for the price increase in Corona pandemic.

Pressure on Powell is poorly received by investors

The concern that Trump could try to push Powell out of office fueled the withdrawal of investors from the US stock market on Monday. The Dow Jones Industrial closed 2.48 percent lower to 38,170.41 points. The NASDAQ 100, which mainly filled with technology values, dropped by 2.46 percent to 17,808.30 points. With the S&P 500, the minus was 2.4 percent.

Already on Friday, Trump’s business advisor Kevin Hassett said that President Proxim was able to dismiss Powell. His term at the head of the central bank Federal Reserve runs until May 2026 – and Powell made it clear that he wants to fulfill it. A US President cannot dismiss a central bank chief for no reason after a judgment by the Supreme Court from the 1930s.

« Alarm level red » for Tesla?

Tesla shares lost 5.8 percent. The electric car manufacturer presented quarterly figures for the first quarter on Tuesday – in which the deliveries fell by 13 percent. From analysts Dan Ives von Wedbush Securities, who for a long time expressed himself very optimistically about the future of Tesla, warning words came at the weekend. Tesla stands in front of an « alarm stall red » moment. Company boss Elon Musk must end his work in the Trump government and focus on Tesla, IVES demanded.

Papers from the chip manufacturer Nvidia slide by a further 4.5 percent. Already on Thursday, the titles of the AI ​​overflower had suffered from the news that the US government also prohibited the chip manufacturer’s sale of the slimmed-down chips with the name H20 to China. AI chips from Nvidia play a key role for training and operating software with artificial intelligence.

Netflix shares, on the other hand, won 1.5 percent. The streaming provider had pleasantly surprised investors on Thursday after the A stock exchange end with the results of the past quarter and the expectations of the current annual quarter.