Daijiworld Media Network- US
US, Apr 22: Asian markets opened lower Tuesday, mirroring the fallout from a sharp selloff on Wall Street as global investors grappled with rising concerns over U.S. Federal Reserve independence and an increasingly volatile economic outlook.
An index tracking Asian shares edged into negative territory in early trading, even as US equity futures showed signs of a mild rebound following Monday's over 2% drop in the S&P 500. Meanwhile, the US dollar steadied after briefly falling to a 15-month low, while gold surged to another record high on haven demand.
The slide in sentiment follows renewed attacks by President Donald Trump on Federal Reserve Chair Jerome Powell, raising alarms over potential interference with the central bank’s autonomy. Trump’s latest comments on social media platform Truth Social urged “preemptive cuts” to interest rates, claiming there was "virtually" no inflation — despite the Fed’s preferred inflation gauge remaining above target levels.
Adding fuel to the fire, National Economic Council Director Kevin Hassett confirmed Friday that Trump is exploring whether he can legally remove Powell, a move that would rattle investor confidence and risk triggering global market volatility.
“The crisis of confidence in US markets is deepening as Trump’s policies shake up, possibly break, the global economic order,” noted Kyle Rodda, Senior Market Analyst at Capital.com.
The tensions have already sparked what analysts are calling a "Sell America" shift, as fears of a trade-fueled recession grow. Trump’s aggressive stance on tariffs — raising duties to historically high levels — is expected to add inflationary pressure and drag on economic growth.
“Were Powell to be fired, the initial reaction would be a huge injection of volatility into financial markets,” warned Michael Brown, Senior Research Strategist at Pepperstone. “The Fed’s independence is clearly under threat, and so is global faith in US economic leadership.”
Investors now await next week’s fresh inflation data and Fed commentary, even as markets brace for more political turbulence.