US Stock Markets Decline Amid Fed Criticism
(MENAFN) US equity markets closed the week with steep declines, while the VIX index surged by 23% as friction intensified between US President Donald Trump and Federal Reserve Chair Jerome Powell.
The Dow Jones Industrial Average dipped 1.23%, shedding 542.4 points, to end the day at 43,588.58.
The Nasdaq Composite slid 2.24%, or 472.32 points, finishing at 20,650.13, while the S&P 500 retreated 1.6%, or 101.38 points, settling at 6,238.01.
The Volatility Index (VIX) — often referred to as the “fear index” — climbed 23% to 20.55 as of 2012GMT.
In the wake of the Fed’s announcement Wednesday to maintain its current interest rate, Trump intensified his attacks on Powell, labeling him "TOO LATE, and actually, TOO ANGRY, TOO STUPID, & TOO POLITICAL, to have the job."
A day later, Trump pressed the Fed board to "assume control" and act on "WHAT EVERYONE KNOWS HAS TO BE DONE."
By Friday, two Federal Reserve policymakers released public explanations for their decisions to support a rate reduction during the recent meeting.
In a further development, Adriana D. Kugler, a member of the Federal Reserve’s board, submitted her resignation on Friday.
Additionally, Trump announced that he had directed the removal of the official leading the Labor Department’s statistics unit after the agency reported sluggish job creation.
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