World shares sink after Trump escalates feud with the Federal Reserve
By YURI KAGEYAMA Associated Press Business Writer TOKYO AP Shares sank Tuesday in Europe and Asia after President Donald Trump released he was firing Federal Reserve Governor Lisa Cook The announcement came after trading closed Monday on Wall Street where benchmarks reversed chosen of their big gains from notched last week on hopes for interest rate cuts from the Fed Trump revealed in a letter posted Monday on his Truth Social platform that he was removing Cook because of accusations that she committed mortgage fraud Related Articles Trump signs executive orders aimed at ending cashless bail Cracker Barrel says it could ve done a better job with release of new logo that angered particular fans Southwest Airlines new protocol will affect plus-size travelers Here s how Ticker Stocks slip on Wall Street Maine clinics denied Medicaid funds during lawsuit after Trump cuts to abortion providers Elon Musk accuses Apple and OpenAI of stifling AI competition in antitrust lawsuit It s an unprecedented move that marks a sharp escalation in Trump s battle to exert greater control over what has long been considered an institution independent from day-to-day politics Apart from rattling financial markets it is likely to touch off an extensive legal battle that will maybe go to the Supreme Court Trump s decision to remove a sitting Fed governor has shaken confidence in the institution that underpins the world s financial system Nigel Green of the financial advisory deVere Group stated in a commentary Investors are reacting because the independence of the central bank is critical to field stability and any sign of political capture raises alarm bells everywhere In early European trading Germany s DAX lost to while the CAC in Paris slumped to Britain s FTSE gave up to The futures for the S P and the Dow Jones Industrial Average were lower In Asian trading the bulk benchmarks declined Japan s benchmark Nikkei dove nearly to finish at Australia s S P ASX declined to South Korea s Kospi lost to after material revealed improved consumer sentiment strengthening expectations that the central bank won t lower interest rates Hong Kong s Hang Seng shed to while the Shanghai Composite slipped to On Monday the Wall Street the S P fell The Dow industrials closed lower and the Nasdaq composite shed Trump has repeatedly attacked the Fed s chair Jerome Powell for not cutting its short-term interest rate and even threatened to fire him Wall Street is still overwhelmingly betting that the Fed will cut interest rates at its next meeting in September Traders see an chance that the central bank will trim its benchmark rate by a quarter of a percentage point according to details from CME Group In other trading early Tuesday benchmark U S crude lost to a barrel Brent crude the international standard declined to a barrel The U S dollar edged down to Japanese yen from yen The euro rose to from
