Global Markets Slide as Trump Targets Fed, Euro Climbs to a Three-Year High

Investor jitters returned to global markets on Monday, as renewed political tension in the U.S. and concerns over trade policy sent stocks falling and safe-haven assets soaring.

Investor nerves were rattled on Monday, pushing global stocks lower and sending safe-haven assets soaring as renewed political tension in the U.S. and concerns over trade policy kept market jitters alive.

Asian equities slid sharply, with Japan’s Nikkei and Taiwan’s benchmark index falling more than 1%, setting the stage for a gloomy mood in Tokyo. S&P 500 and Nasdaq futures slipped 0.75% and 0.8%, respectively, indicating a continuation of the sell-off in U.S. equities.

The euro rose to a three-year peak on Monday, maintaining gains sparked by the latest signs of divergence in central bank policies and rising concerns over U.S. monetary policy.

The Swiss franc, meanwhile, hit a decade-high against the greenback as investor anxiety over the U.S. administration grew.

The latest slide in global stocks and bonds came after President Donald Trump’s harsh criticism of Federal Reserve Chair Jerome Powell for mismanaging monetary policy.

Trump’s administration is reportedly exploring whether Powell could be removed from his position, a move that would call into question the Fed’s independence and likely send global markets into a tailspin.

But legal experts say the president’s authority to do so is limited, and removing a Fed chair without "cause" would be unprecedented.

The president’s team is said to be considering the move as part of broader efforts to exert more control over the U.S. central bank.

Trump has repeatedly attacked the Fed for raising interest rates and failing to do more to stoke economic growth. He has also accused the central bank of being biased against him and his policies.

The president’s comments come at a time of heightened sensitivity over U.S. economic and political institutions.

Investors are closely watching developments in the trade dispute between the U.S. and China, which has raised concerns over a global economic slowdown.

Trump’s administration is also planning to impose tariffs on goods from Mexico in an attempt to reduce illegal immigration across the U.S. border.

The president’s policies have been credited with helping to keep unemployment low and spur economic growth. However, his critics say his policies are harmful to workers and consumers.