Trump’s Fed Pressure: Dollar Slumps, Stocks Tumble, Crypto Soars
![\"US](\"https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjQ0Y2QtMGMwNC03YmFhLWE5ODQtYzAzYTUzODE1NTg5.jpg\")
The US stock market experienced a significant downturn, and the dollar weakened following President Trump’s renewed attacks on Federal Reserve Chair Jerome Powell. Surprisingly, cryptocurrency markets remained largely unaffected, even showing gains.
On April 21st, the US stock market closed in the red. The S&P 500 fell 2.4%, the Nasdaq dropped 2.5%, and the Dow Jones Industrial Average lost a substantial 2.5%, or nearly 1000 points (data from Google Finance). This continues a negative trend, with the S&P 500 down over 12% year-to-date and the Nasdaq down almost 18%.
![\"US](\"https://s3.cointelegraph.com/uploads/2025-04/01965b6b-6e37-7628-a308-3056d085db75\" "\\"US")
This market volatility stems from the escalating conflict between President Trump and Chair Powell, coupled with ongoing concerns about trade tariffs. Trump, on his Truth Social platform, again called for preemptive interest rate cuts, citing low energy and food prices as evidence of a lack of inflation.
Trump’s repeated calls for lower interest rates contrast with Powell’s maintained 4.5% rate. Powell’s recent criticism of Trump’s tariffs as potentially leading to stagflation further inflamed the situation, prompting Trump to call for Powell’s dismissal.
![\"Trump's](\"https://s3.cointelegraph.com/uploads/2025-04/01965b6b-73a3-7f2e-bfe3-57c82d9059b4\" "\\"Trump's")
Despite the turmoil, the Federal Reserve is expected to maintain its current stance at its May 7th meeting, with a low probability of a rate cut predicted by CME Fed Watch.
US Dollar Weakening
The US Dollar Index (DXY) has fallen over 10% this year, reaching a three-year low below 98 on April 21st (TradingView). Real Vision’s Raoul Pal noted that a weaker dollar benefits those servicing dollar-denominated debts, contributing to increased global liquidity.
Related: US dollar goes ‘no-bid’ — 5 things to know in Bitcoin this week
In contrast to the stock market decline, the crypto market held onto its weekend gains, maintaining a total capitalization of $2.83 trillion. Bitcoin reached a four-week high of $88,500 on April 22nd, demonstrating resilience amid market uncertainty.
Bitfinex analysts highlighted Bitcoin’s impressive resilience during this turbulent period.
Magazine: Altcoin season to hit in Q2? Mantra’s plan to win trust: Hodler’s Digest