On April 22, 2025, global financial markets experienced significant fluctuations amid the escalation of U.S. trade policy and a growing conflict between President Donald Trump and Federal Reserve Chair Jerome Powell, reports the Baltimore Chronicle, citing The Guardian.
The U.S. dollar fell to its lowest level in three years, triggering a surge in gold prices to a record $3,500 per ounce. This occurred after Trump intensified his criticism of Powell, accusing him of refusing to lower interest rates despite the economic consequences of the new tariffs.
U.S. stock markets also suffered losses: the Dow Jones, Nasdaq, and S&P 500 indexes all declined by more than 2.4%. Technology companies, such as Tesla and Nvidia, were particularly affected.
The International Monetary Fund (IMF) issued a warning about the potential decline in global economic growth, which further heightened investor concerns. In response to the situation, UK Chancellor of the Exchequer Rachel Reeves plans to use IMF meetings in Washington to call for global free trade and tariff reductions.
Meanwhile, the Federal Reserve remains resilient to political pressure, emphasizing the need to maintain independence and a data-driven approach to monetary policy decisions.
These developments occur against the backdrop of rising geopolitical tensions, including new U.S. tariffs on solar panel imports from Southeast Asia and delays in trade negotiations with Thailand.
Experts warn that further escalation of the conflict between the White House and the Federal Reserve could lead to even greater instability in global financial markets.
Earlier we wrote about will the chinese yuan replace the dollar in global finance.