U.S. markets ended lower on Monday as former President Donald Trump once again called on the Federal Reserve to reduce interest rates, sparking renewed uncertainty among investors. The S&P 500 fell amid concerns that political pressure could influence future monetary policy decisions.
In remarks made during a campaign event, Trump criticized the current rate levels, claiming they were stifling economic growth and hurting American competitiveness. He urged the central bank to adopt a more accommodative stance, saying, “The Fed needs to wake up and start cutting rates—fast.”
The comments rattled financial markets already on edge over inflation signals and global economic headwinds. Investors appeared wary of potential disruptions to the Fed’s independence, with rate expectations shifting in response to Trump’s rhetoric.
While the Federal Reserve has so far maintained its cautious approach, with Chair Jerome Powell emphasizing data-driven decisions, Trump’s continued pressure adds a political dimension to an already delicate economic balancing act.
The Dow Jones Industrial Average and Nasdaq also posted modest losses, reflecting broader market unease.
Market analysts noted that while Trump’s remarks don’t directly impact Fed policy, they contribute to volatility at a time when investor confidence remains fragile.