ꦺ Markets are s🤡ending a message to President Donald Trump: Don’t mess with the Federal Reserve.

Investors fled U.S. assets again on Monday after Trump put more pressure on the Fed to cut interest rates—pote𝔉ntially threatening its ability to act inওdependently of the president’s desires. The latest Trump criticisms are making investors even less confident about the U.S. dollar and the country’s dominant role in global financial markets, analysts say.

Markets had “already started to entertain notions of 澳洲幸运5开奖号码历史查询:de-dollarization” following Trump’s tariff policies, according to Themistoklis F🍌iotakis, a top strategist at the British bank Barclays. Trump is adding fuel to the fire, Fiotakis wrote, bringing about risks to the dollar that💯 are “too large to ignore.”

“The notion of the Fed independence being at risk … is an event that carries very significant tail risks not only for the dollar, but also for the global financial system,” Fiotakis wrote in a note to clients🌊. 

The concerns about Fed independence added to lingering concerns about the impact of tariffs on the economy, sparking a 澳洲幸运5开奖号码历史查询:vꦕolatile session of ꦐtrading on Monday. Major stock indexes fell more than 2%, U.S. Treasury securities sold off again, and the 澳洲幸运5开奖号码历史🐟查询:dollar🔴 hit its weakest level in three years. 

The sell-off followed a Truth Social post on Monday from Trump calling Fed Chair Jerome Powell a “major loser” and saying that 澳洲幸运5开奖😼号码历史查询:lower inflation figures call for rate cuts “NOW.” Last week, 澳洲幸运5开奖号码历史查询:he wrote Powell’s termination "cannot come fast enough,” raising concerns that the preside🐼nt would seek to fire th♒e central banker. 

Financial markets are clearly uncomfortable with the 澳洲幸运5开奖号码历史查询:politicization of the central bank, Thierry Wizman, glo♋bal currency and rates strategist at the Australian financial services firm Macquarie, said in a🍨n interview. 

“The market is okay with rates coming dow𓃲n. What the market is not okay with is having the president or politicians 🃏tell the Fed that the rates need to come down,” Wizman said.

What’s Different This Time Around?

Powell is no stranger to Trump’s attacks. Trump appointed Powell as Fed chairman during his first term as president, though he’d soon sour on Powell a𒁏nd criticize him publicly. In 2019, he questioned whether Powell was a bigger “enemy” for the United States than Chinese President Xi Jinping.

Despite his criticisms, Trump ultimately opted against removing Powell and thus avoided any legal 🅠fights that could ensue. Former President Joe Biden reappointed Powell as Fed chair for a term that is due to end in May 2026.

In his second term, Trump has been more forceful in removing independent ag🌄ency leaders, whether at the Federal Trade Commis♏sion or the National Labor Relations Board. 

It’s unclear whether he will bring that same view to the Fed. Treasury Secretary Scott Bessent has told the White House that firing Powell could prompt turmoil in financial markets, according to Politico. But Kevin Hassett, a top Trump economic adviser, said on Friday that the White House will “continue to study that matter.”

“We’d be remiss to conclude that the president’s rhetoric won’t lead to action,” Ian Lyngen, an interest rate strategist at BMO Capital Markets, wrote in a note꧙ to clients. 

If he does attempt to remove Powell, the question could end up in the👍 Supreme Court,🅷 Lyngen wrote.

“At a moment in which the Administration has already instilled ever-higher levels of uncertainty into the economic outlook, any attempt to remove Powell will add to the downward pressure on U.S. assets,” he wrote.