Asian stocks sink into red as Trump criticizes Fed

Trump has repeatedly criticized Fed Chairman Jerome Powell, blaming him for cutting interest rates. His team is even evaluating whether to fire Powell, a move that would have major consequences for the Fed’s independence and for global markets. That has eroded investor confidence.

Although some regional stock markets were closed for the Easter holiday on Monday, most opened in the red. Japan's Nikkei 225 index fell 1%; South Korea's Kospi index was flat. S&P 500 futures fell 0.64% and Nasdaq futures fell 0.53%.

“Markets were already on edge due to escalating geopolitical tensions, and now concerns are growing that Trump’s potential intervention in the Fed could add another layer of uncertainty,” said Charu Chanana, chief investment strategist at Saxo in Singapore.

“Any sign of political pressure on monetary policy could undermine the Fed’s independence and complicate the path forward for interest rates as investors seek stability amid global volatility,” he added.

Trump's tariffs have roiled financial markets and triggered a sharp sell-off in Treasury bonds and the dollar, casting further doubt on the long-held belief in the safe-haven status of U.S. assets.

Fragile sentiment in US assets was exacerbated by Trump’s attacks on the Fed, with the dollar collapsing against most other currencies to a three-year low. The yield on the benchmark 10-year US Treasury note also rose 3 basis points to 4.358% in early morning Asia.

Chicago Fed President Austan Goolsbee said on Sunday (April 20) that he hopes the United States will not move into an environment where the central bank's ability to set monetary policy independent of political pressure is questioned.

With the U.S. earnings season kicking off, investors' focus this week will be on results from tech giant Alphabet, chipmaker Intel and electric carmaker Tesla (TSLA.O).

All of the Magnificent Seven large-cap stocks are down sharply since the start of 2025, with Alphabet down about 20% and Tesla down 40%.

Companies and investors are grappling with a shifting tariff landscape as the Trump administration negotiates with other countries. While Trump has suspended some of the biggest import tariffs, the U.S. is also locked in a trade war with China, the world’s second-largest economy.

Trump said on Friday that the US was having good private conversations with China amid the trade war between the two countries. But China's ambassador to the United States has said the US should show respect before any talks can take place.

Source: https://thoibaonganhang.vn/chung-khoan-chau-a-chim-trong-sac-do-khi-ong-trump-chi-trich-fed-163089.html