Home / Business and Economy / US-Fed Tensions Spark Global Market Caution
US-Fed Tensions Spark Global Market Caution
12 Jan
Summary
- European shares declined amid U.S. administration tensions with the Federal Reserve.
- President Trump's proposed credit card interest rate cap impacted bank stocks.
- AstraZeneca shares fell after delisting from the Nasdaq-100 index.
European stock markets saw a slight decrease on Monday, reflecting global investor apprehension stemming from escalating tensions between the U.S. administration and Federal Reserve Chair Jerome Powell. The primary driver for the market's cautious sentiment was President Donald Trump's recent call for a one-year cap on credit card interest rates at 10%, a move that specifically pressured banking shares. This announcement, made without detailed specifics, caused significant concern among financial institutions.
Further unsettling markets, officials within the Trump administration had reportedly threatened to indict Federal Reserve Chair Powell over remarks concerning a renovation project. Powell asserted this was an attempt to influence interest rates, adding another layer of uncertainty. Consequently, investors gravitated towards safer assets as the political climate created a palpable sense of unease across global financial platforms.
