US financial markets plunged Monday while cryptocurrency prices remained firm, as US President Donald Trump ramped up his public feud with Federal Reserve Chairman Jerome Powell, as reported by The Guardian and other news outlets.
The clash between the country’s highest political and monetary leaders shook traditional markets to their core but left cryptocurrencies surprisingly unscathed.
Stock Markets Plummet After Presidential Remarks
American stock indices closed forcefully lower on April 21, with broad losses at major benchmarks. The S&P 500 declined 2.3%, the tech-dominated Nasdaq lost 2.4%, and the Dow Jones Industrial Average plummeted by almost 1,000 points, down 2.4%, based on Google Finance data.
JUST NOW: President Trump calls Jerome Powell a “major loser” and demands interest rates lowered “now” pic.twitter.com/rAM7CVmPw2
— Morning Brew
(@MorningBrew) April 21, 2025
Trump Calls For Rate Cuts And Slams Fed Chair
Underlying the market volatility is a rapidly intensifying clash between President Trump and Federal Reserve Chairman Powell. Trump utilized his April 21 Truth Social forum to post that “Preemptive Cuts in Interest Rates are being called for by many.”
The President contended rate cuts are warranted due to “Energy Costs [being] way down, food prices [being] substantially lower, and most other ‘things’ [trending] down,” asserting that “there is virtually No Inflation.”
Trump has consistently criticized Powell, labeling him “Too late and wrong” for not cutting interest rates, which currently stand at 4.5%.
Tensions heightened after Powell cautioned that Trump’s tariffs could incite stagflation, prompting the president to call for his ousting, stating that Powell’s “termination cannot come fast enough.”
Dollar Weakens While Crypto Shows Strength
As the political conflict escalates, the US Dollar Index (DXY), which tracks the dollar against other significant currencies, dipped below 98 on April 21, marking a three-year low.
This downturn follows a trend that has seen the dollar drop over 10% of its value since the onset of 2025, according to the latest data.
Bitcoin Unfazed Amid Political Turmoil
In sharp contrast to traditional markets, cryptocurrencies have maintained their weekend gains, with the total market capitalization remaining steady at $2.74 trillion.
Bitcoin, according to data from Coingecko, reached a four-week high of $88,428.
Why is the price of bitcoin flat? Should Trump fire Jerome Powell? Will The US lose reserve currency status?
I answer your questions
pic.twitter.com/S7Q6hANR3H
— Anthony Pompliano
(@APompliano) April 18, 2025
Industry Figures Warn Vs. Political Interference
Cryptocurrency entrepreneur Anthony Pompliano warned against presidential intervention in the Federal Reserve leadership.
In a video posted on X on April 18, Pompliano expressed that he does not believe Trump should unilaterally fire the Fed chair.
He further stated that dismissals based on policy disagreements could lead the nation into precarious situations: “Where you have a disagreement and then the firing, I think that’s not really the area that we want to go into.”
Market experts predict that the central bank will maintain its current stance at its next meeting on May 7. Current data suggests only a 13% likelihood of a rate reduction at that session.
Featured image from Chip Somodevilla/Getty Images. Chart from TradingView
