Donald Trump’s tariffs of April 2 kickstarted a major world market transformation because investors lost $5 trillion in just one week. Financial experts and investors worldwide see an economic cooldown as the real threat and predict it will push the entire world into a deep recession.
Trump addressed his Truth Social followers on Friday to urge the Federal Reserve chair Jerome Powell to cut interest rates since he believed this was the right moment to act.
Chairman Powell should reduce interest rates today and stop letting politics interfere with his role because of the current economic situation. Trump sent his message to the social media platform complaining Powell was slow in responding and demanding monetary changes now.
Powell Holds the Line Amid Tariff Fallout
The market downturn has not changed Powell’s determination to reject quick policy changes. Through his official announcement the Fed leader confirmed his organization’s dedication to keeping prices steady and cautioned that Trump’s strong trade measures will probably boost inflation briefly but might turn permanent if not handled correctly.
Powell explained that the Federal Reserve must operate independently from political deadlines. Our team constantly tracks inflation developments and will take action based on the available statistics.
The dispute between the president and Powell developed during market reactions that shaped two of the worst back-to-back U.S. performances ever. The Dow Jones Industrial Average fell more than 2,200 points during a single trading day on Friday after a previous loss of 1,679 points.
During the latest market downturn the S&P 500 and Nasdaq lost more ground than during the start of the COVID-19 pandemic in March 2024. Bets on Bitcoin kept being profitable while stock markets crumbled.
Bitcoin Holds Steady as Traditional Markets Collapse
Despite worldwide financial instability Bitcoin showed limited price movements as it stayed close to $83,000 and rose slightly. People now see Bitcoin as an effective tool to protect their assets during financial market disruptions.
The S&P 500 index dropped all of its earnings after March 2024. According to Rajat Soni the CFA analyst Bitcoin advanced 30% in the same period as the S&P 500.
According to Tether CEO Paolo Ardoino people should view Bitcoin as their safety tool because of its resilience.
The Director of Market Research at Unchained Joe Burnett expressed his viewpoint that Trump’s tariffs started a new chapter of market downfall when he uploaded a trending video. Developing a substantial bitcoin investment looks promising because of current market conditions. Not financial advice.”