Donald Trump intensifies attacks on Federal Reserve chief Jerome Powell

In recent events that unfolded in the United States, the price of gold surged to an all-time high amid growing concerns about U.S. President Donald Trump's attacks on Federal Reserve Chair Jerome Powell. On April 22, 2025, the price of gold soared to $3,500.05 per troy ounce, driven largely by investor anxiety over Trump's public criticisms and threats to remove Powell from his position. Gold, viewed as a safe-haven asset, benefited from increasing demand amidst fears of economic instability linked to Trump's tariffs and the potential firing of the Fed chair, which could challenge the Fed's independence and investor confidence. The escalating remarks from Trump included labeling Powell a 'major loser' for resisting calls to cut interest rates to stimulate the economy, arguing that failure to act might lead to an economic slowdown. Powell previously warned that Trump's tariffs could increase inflation rates and hamper economic growth, indicating potential conflict with Trump's objectives of lowering rates to foster more favorable economic conditions. Following this backdrop, on April 22, U.S. stocks and the dollar dropped sharply, reflecting market turmoil fueled by Trump's financial strategy. International response has also featured prominently, notably from European Central Bank President Christine Lagarde, who expressed her hope that Trump would refrain from dismissing Powell, emphasizing trust in the Fed's independence in financial matters. Global markets were particularly sensitive to Trump’s aggressive posturing against Powell, illustrating the potential for volatility as international participants assessed the implications of domestic U.S. financial decisions on the broader economy. The tensions appeared to have eased slightly as Trump indicated he would not fire Powell just a day after significant U.S. market declines. Despite these fluctuations, analysts predict ongoing volatility and uncertainty as markets react to Trump's social media comments and the unpredictability of economic policies. The situation remains fluid as stakeholders continue to gauge the implications of these developments on overall market confidence.