US Stocks Decline Amid Trump Administration Pressure on Fed

Renewed Criticism and Proposed Credit Card Rate Cap

US stock markets weakened on Monday following renewed criticism from the Trump administration against the Federal Reserve, raising concerns about central bank independence ¹

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Source 2

https://internasional.kontan.co.id/news/wall-street-dibuka-melemah-setelah-serangan-pemerintahan-trump-terhadap-the-fed

. The administration's comments came alongside a proposal to implement a one-year cap on credit card interest rates, which put additional pressure on financial sector stocks ¹

Source 1

https://investasi.kontan.co.id/news/wall-street-loyo-trump-tekan-ke-fed-dan-pembatasan-bunga-kartu-kredit-guncang-pasar

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The Dow Jones Industrial Average fell 4.4 points or 0.01% to 49,499.67. The S&P 500 index dropped 22.2 points or 0.32% to 6,944.12, while the Nasdaq Composite declined 94.5 points or 0.40% to 23,576.88 ²

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The administration's threat to potentially prosecute Fed Chair Jerome Powell over his congressional testimony regarding renovation projects was seen as an attempt to gain more influence over monetary policy. This move has been viewed negatively by market participants as it challenges the perceived independence between the Fed and the White House ¹

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Market Reaction and Expert Analysis

"This is another blow to the perception and expectation of independence between the Fed and the White House. Any meaningful further steps toward reducing that independence will not be viewed positively by the market," said Jordan Rizzuto, CIO at GammaRoad Capital Partners ¹

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The proposed credit card interest rate cap added to the market pressure, particularly affecting financial sector stocks. The combination of these factors contributed to the overall decline in US stock markets on Monday.