Stock Market Tumbles After Trump Warns of a “Slowing”

Published: April 21, 2025 by Omor IE

Key Points

President Donald Trump has reiterated earlier comments about the Fed’s Jerome Powell being “too late.”
He warned that there could be a “slowing” if interest rates are not cut.
In response, the stock market declined even more.
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The stock market is heading lower this morning despite the lack of any hard data coming in today. This is mainly due to the continuing trade war and the falling dollar, plus the most recent comment from President Donald Trump on Federal Reserve Chairman Jerome Powell.

The president does not have the power to fire Powell, but this is still adding to the fear and uncertainty on Wall Street. National Economic Council Director Kevin Hassett said that Trump was looking into firing Powell a day after Trump posted on Truth Social that Powell’s removal cannot come fast enough.

Sen. Elizabeth Warren said that the stock market would crash if Jerome Powell were fired. The firing is unlikely, but the risks are definitely being priced in.

Here’s a market update as of 10:00 A.M (ET) today.

The S&P 500 is down 74.82 points, or 1.42%.
The Nasdaq Composite is down 368.72 points, or 2.26%.
The Dow Jones Industrial Average is down 619.85 points, or 1.58%.

President Trump Wants Rate Cuts

Even today, President Donald Trump posted on his Truth Social that “preemptive cuts” in interest rates are being called by many. He noted that energy costs and food prices are “substantially lower,” and that there’s virtually no inflation.

He warned that higher interest rates could lead to a “SLOWING” of the economy if “Mr. Too Late” (likely Powell) cuts interest rates.

The fact that the president acknowledged a slowdown could lead to market sentiment getting even more bearish since the Federal Reserve has shown no sign of doing a rate cut anytime soon. Goolsbee sees rate cuts kicking in 12-18 months from now, and there’s a consensus that the Fed will wait to see the tariff impact first before cutting.

Hassett predicted a flurry of trade action this week, and this might move the market in either direction depending on how things go.

Gold Surges

Gold prices have surged even more today due to the increase in volatility. Gold Futures are up 3% as of writing to $3,428 and have gained 46.15% in just the past year. This is most likely due to a lack of other “safe” assets in which investors can park their money. The dumping of Treasuries has made headlines in recent weeks, and it seems like many are choosing gold instead.

The U.S. dollar has sunk due to international investors pulling away from the U.S. market and Treasuries. Both have a record of doing well during market uncertainty, but it doesn’t seem so this time around.