In a shocking turn of events, US stocks and the dollar tumbled sharply as President Donald Trump launched an all-out assault on Federal Reserve Chair Jerome Powell, branding him a "major loser" for refusing to cut interest rates.

In a fiery social media post, Trump demanded that Powell take immediate action to stimulate the economy, criticizing him for being slow to respond to vital economic indicators. "There can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW," Trump declared without holding back.

This verbal onslaught comes at a precarious time, as Trump's own tariff strategies have fueled a massive sell-off in the stock market and heightened recession fears. The discord between Trump and Powell, whom he appointed, has only added to the financial upheaval.

The S&P 500 index, which encompasses 500 of America’s largest companies, plummeted nearly 2.4% on Monday, marking a staggering 12% loss since the beginning of the year. Similarly, the Dow Jones Industrial Average and Nasdaq saw declines of 2.4% and over 2.5% respectively, with the Nasdaq down almost 18% this year.

Meanwhile, Asian markets reacted mutely, with Japan's Nikkei 225 down just 0.1% and Sydney’s ASX 200 down 0.3%. European markets, too, reflected a downward trend with the UK's FTSE 100 marginally lower and Germany's Dax dipping by 0.5%.

In a twist, both the US dollar and government bonds—usually considered safe havens during turbulence—also succumbed to the pressures, with the dollar index hitting its lowest point since 2022.

As investors sought refuge from the chaos, gold prices surged to a staggering new high of $3,500 per ounce, marking it as a beacon of safety amid increasing global uncertainties.

Economics experts have pointed out that Trump's tariffs and global conflicts, notably in Ukraine and Gaza, have intensified gold's allure. Susannah Streeter, from Hargreaves Lansdown, emphasized the lack of resolution on these global issues as a driving factor for gold’s rise.

Trump’s ire at Powell is nothing new. Historically, Trump has been vocal about his dissatisfaction with the Fed's direction, even hinting at the possibility of Powell’s dismissal. Last week, he boldly tweeted, "Powell's termination cannot come fast enough." Such a move would stir controversy given the tradition of independence that characterizes the Fed.

Economics professor Christopher Meissner weighed in, highlighting that previous political pressures on the Fed have often been detrimental. He warned this could signal a significant regression in monetary policy independence, a critical element for maintaining long-term financial stability.

As policymakers convene for the spring meetings of the International Monetary Fund (IMF) and World Bank in Washington, all eyes are on the impending forecasts. Analysts suggest that the current trends could lead to significant markdowns in growth projections.

In an ominous prediction, Meissner stated that a major downturn in the US economy could reverberate across the globe, potentially manifesting in widespread financial distress. Concerns mount as investors grow wary of the Fed's direction and fear inflation may persist.

Streeter encapsulated the sentiment by suggesting that Trump’s economic policies are damaging America’s reputation, no longer positioning it as a stable anchor in times of crisis. Rising bond yields above 4.4% further underscore the unease surrounding the future trajectory of the US economy.