21.04.25 - Fed independence in doubt

US President Donald Trump has repeatedly criticized Fed Chairman Jerome Powell for allegedly keeping interest rates too high.
Meanwhile, investors still wait and are missing meaningful progress in the ongoing tariff negotiations.

Markets: US stocks opened sharply lower with the Nasdaq losing more than 2% in the first trading hour. Interest rates down from 4.4% to 4.35% intraday, US dollar continues to drop while gold is trading first time above USD 3’400.

My view: Trump’s new focus on Fed Chair Jerome Powell comes after Powell’s stark warning on the potential effects of tariffs on the economy.

Global equity markets remain highly sensitive to tariff-related developments.
Shifting headlines and evolving narratives continue to fuel heightened volatility and sharp market swings.

Given these dynamics, I am maintaining my current positioning, anticipating greater downside potential ahead.

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