Wall Street and the dollar plunge as investors worry about Trump’s trade war
PBS NewsHourMAY 1
Markets Tumble as Trump Escalates Attacks on Fed Chair Powell
Above: US Federal Reserve Chair Jerome Powell holds a press conference after the Monetary Policy Committee meeting, at the Federal Reserve in Washington, DC, on March 19, 2025. Image copyright: Roberto Schmidt/Contributor/AFP via Getty Images
The Spin
Pro-Trump narrative
Interest rates need to be lowered immediately to prevent economic slowdown, as inflation is virtually non-existent and current Fed policy risks hampering growth and market performance. Trump is right to be taking a strong stance against Powell's damaging actions.
Anti-Trump narrative
The Federal Reserve must maintain its independence to effectively manage inflation and economic stability, as political interference in monetary policy historically leads to poor economic outcomes and reduced market confidence. Trump is the one causing stock market turmoil with incoherent, unpredictable economic policy.