Wall Street shares are threatened with a major collapse if Trump sacked the head of the Federal

On Monday, American markets witnessed a sharp drop, coinciding with the escalation of tensions about US President Donald Trump’s attempts to dismiss the Federal Reserve President Jerome Powell, and to increase doubts about the future of monetary policy in the country, and Wall Street will be threatened with a new collapse if Trump was removed Powell, according to CNN.

A sharp decline in American indicators

The Dow Jones Industrial Index decreased by 972 points, or 2.48 percent, while the broader Standard & Poor’s 500 index fell 2.36 percent.
As for the Nasdak complex index, which is dominated by technology companies, it decreased by 2.55 percent, in a clear reflection of the panic that swept the markets.

Well -sales wave in Wall Street

The sales operations extended to most shares of the companies listed in the Dow Jones and Standard & Poor’s 500 indexes, as the vast majority of them closed a decrease, at a time when the three indicators are heading to record its worst monthly performance since 2022.
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The US dollar continues to decline

The dollar index, which measures the performance of the US currency against a basket of global currencies, fell by more than 1 percent, recording its lowest level in more than three years. This decline reflects the weak confidence in the stability of American economic policies in light of the ongoing political escalation.

Trump ascends the attack on Powell

The decline in the markets came after fiery statements by President Trump against Jerome Powell, where he wrote on social media that “ending his service cannot come enough quickly.”
In a later statement to reporters from the Oval Office, Trump said: “If I want to leave, he will leave quickly, believe me. I am not satisfied with him.”
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Trump has repeatedly criticized his refusal to reduce interest rates, despite the escalation of economic pressures resulting from the new customs duties, which raised investor concerns about direct political intervention in the decisions of the central bank.

Market fears of politicization of monetary policy

Sam Stofal, the chief investment strategy in “CFRA”, commented: “Wall Street does not like the president’s attempt to influence the interest policy. This will not be good in the long run.”
One of the pillars of confidence in the American economy, which makes any threat to this principle as a direct threat to the markets.

Analysts: Loss of confidence is the real engine

Krishna Joe, Vice Chairman of the Evekor ISI company, said that the recent market movements show a growing loss of confidence in the economic trends of President Trump, pointing to the decline in the dollar and the high revenues of bonds as evidence of this.
In the same context, analysts at the “Makari” Foundation explained that the decline in the dollar is mainly related to fears of the politicization of the Federal Reserve, as well as the absence of any progress in commercial agreements, which enhances concern that the customs duties crisis continues for the next months.

Customs duties remain in the interface

Despite the current focus on the future of the federal reserve, analysts assert that customs definitions will remain at the forefront of the economic scene in the coming months.
But in the short term, analysts expect investors to return to the results of corporate profits for the first quarter of 2025, which will significantly determine the market track in the coming period.