SINGAPORE – Asian equities and US stock futures slid on Monday as anxiety over tariffs and public criticism of the Federal Reserve by President Donald Trump hit sentiment, pushing the dollar down sharply and catapulting safe-haven gold to a record high.
Trump launched a series of attacks against Fed Chair Jerome Powell on Thursday, with his team evaluating whether they could fire Powell, a move that has great consequence for the central bank’s independence and for global markets.
Most markets were closed on Friday and some, including most of Europe, remain on holiday for Easter Monday.
S&P 500 futures fell 0.64 percent and Nasdaq futures eased 0.53 percent. In Asia, Japan’s Nikkei fell more than 1 percent while South Korea’s benchmark index was steady. Taiwan stocks slipped 1 percent but China stocks inched higher on Monday.
“Markets are already on edge due to escalating geopolitical tensions, and now concerns are rising that Trump’s potential interference with the Fed could add another layer of uncertainty,” said Charu Chanana, chief investment strategist at Saxo in Singapore.
“Any signs of political pressure on monetary policy could undermine the Fed’s independence and complicate the path ahead for interest rates just as investors are looking for stability amid global volatility.”
Trump’s tariffs have roiled financial markets and triggered a selloff in Treasuries and the dollar in April that cast fresh doubt on the long-held belief in the safe-haven status of US assets.
The drop in confidence in US assets has been exacerbated by Trump’s attacks on the Fed, with the dollar crumbling against most other currencies. The euro touched a three-year high on Monday, while the yen was at a seven-month peak.
