Trump's attack on the federal deepen the wounds of Wall Street indicators

The US markets saw new intensive sales on Monday, as long -term tournament bonds and the dollar joined a depth decline, after US President Donald Trump renewed his sharp criticism of federal reserve president Jerome Powell, at a time when investors were still experiencing the global repairs of the war in the world. Despite Trump’s assurance that customs are progressing, it did not stop the sharp decline. The S&B500 and other major US indicators fell by about 2.5% in a poor trade session, while the dollar index dropped to the lowest level in 15 months. Treasury bond yields dropped to 4.4%for 10 years. In light of the withdrawal of investors from US assets, secure ports have jumped, as the price of gold has risen to a new record of more than $ 3.400 per ounce, and the Swiss franc rose by more than 1% against the dollar. Weakness has also expanded to the credit market, as the cost of insurance has risen to the highest level in more than a week at a basket with excellent investment effects. Of the three businesses with an investment classification, the sale of bonds studied, two withdrew the move due to the market conditions, while “American Express” went to the offer. Trump escalates: Don’t blow up … and we want a preconceived reduction in the interest in a post on the ‘Truth SOS’ platform, Trump has made his attacks on Powell and said that inflation is’ almost not existence ‘, and that it is time for what he describes as’ the proactive reduction of interest. ‘Nevertheless, the latest lecture of the Federal Reserve’s preferred inflation scale is still higher than the purpose of the central bank, with new data expected to be released next week. National Economic Council Director Kevin Haysit said on Friday that Trump was studying whether he could reject Powell. It is a statement that increasing questions about federal ability to maintain its independence in light of the escalation of the president’s anger at the slow pace to reduce interest. Warnings against the politicization of monetary policy said Michael Brown, the most important research strategy in ‘Bibreston’, said that “the dismissal of Powell will cause major shock and fluctuations in the markets, and this will lead to a dramatic displacement of US origin,” warning that “the federal independence is clearly threatened, and the risk of dollar and US dominance becomes more realistic. Paul Singer, the founder of Elliot Investment Management, warned at a special event in Abu Dhabi that the US dollar could lose its position as a global backup currency, according to people who attended the event. Regarding Christopher Wong, the currency strategy at the off -CIBC Bank, he said that “federal criticism in this way may be the risk of politicizing US monetary policy in a way that the markets can find very worrying.” He added, “Honestly, the first dismissal of Powell is difficult to believe. If federal credibility is questioned, it could significantly undermine confidence in the dollar.” Chicago Austin Golsby has warned against any attempt to reduce the independence of the central bank. He said in the “Care of the Nation” program on the “CBS” channel on Sunday: “There is almost unanimity between economists that the independence of the monetary policy of political intervention is crucial, which means that the Federal Reserve or any central bank can perform the necessary task.” Legal experts believe the president could not easily reject the Federal Reserve head, and Powell had previously said he would not resign if Trump asked him to do so. A commercial war remains under pressure, the customs imposed by Trump continued the US markets in light of the fear of economic slowdown. The SMA & B 500 index is the second worst performance of the 45 -following funds for each country since the beginning of Trump’s second state, according to the partner investment group, as it fell by 15%, while the Black Rock Fund followed the German market’s performance by 11%. The sales operations in the US market come during a light trade session, less than 20% of the usual daily rate, in the light of the Easter holidays, waiting for the season of financial results, which have not yet revealed clear indicators about the future of the economy. This session was in contrast to the previous sessions this month, which saw that several sharp shelters in the S&B 500 index were accompanied by standard trade sizes. Bruce Kasman, the chief economist of JP Morgan Chase, wrote: “The global economy is being worked on by a trade war fed by the United States, and we believe it is a great economic shock to threaten the continuity of expansion in America and the world.” He added: “Although we refer to the high risk of global recession, we confirm that this result will not occur immediately.” The drop in the dollar and the rise of the competitive currencies, the Bloomberg index for the dollar immediately fell 0.7%, and all the currencies of the ten group countries increased against the dollar. The rise of the yen contributed to the pressure on Japanese shares, which resulted in the ‘Nikai 225′ index that it fell 1.3%. Western Texas’ mediator raw prices fell by more than 2% to below $ 64 a barrel. In Europe, the markets remained closed due to an official holiday. In a clear indication of the trend of investors to move away from US assets, Deutsche Bank said some Chinese customers have reduced their ownership of US treasury bonds, and preferred European debt. Lillian Tao, the head of the total economy sales of China and the global emerging markets at the bank, said that European bonds, Japanese government bonds and gold are the most likely alternatives to investors. Tesla shares fell 6.8%, and an analyst “widbush ciscoreses” then IVS warned that the company was on a ‘crossroads’ on Tuesday, with the announcement of its results on Tuesday. Elon Musk asked a full -time company instead of its efforts in ‘government power management’.