Trump pressures Fed and trade partners as emerging markets stocks and currencies fall

Emerging markets plunged on Tuesday as President Donald Trump dialed up pressure on the Federal Reserve and reignited multiple trade fights at ￰0￱ MSCI Emerging Markets Index fell by 0.9%, snapping a rally that had lifted it to levels not seen in over three ￰1￱ exited risk positions, especially in Asia , after Trump targeted technology exports, Fed leadership, and tariff policy all in the same ￰2￱ downturn was led by big names Alibaba Group Holding and Tencent Holdings, dropping sharply after Trump threatened new tariffs and export restrictions on semiconductors and other advanced technology linked to ￰3￱ night, Trump fired Federal Reserve Governor Lisa Cook, escalating his efforts to gain control over the ￰4￱ ￰5￱ came just weeks after Adriana Kugler stepped down, leaving one board seat ￰6￱ removal of Cook would shrink the Fed to five ￰7￱ if Trump installs Stephen Miran in the open seat and removes Cook, he’d control four of seven board ￰8￱ adds tariffs and pressures central bank at once The pressure didn’t stop ￰9￱ is pushing forward with a 25% tariff on Indian imports tied to Russian oil transactions, set to begin ￰10￱ the same time, South Korea is under ￰11￱ to uphold an earlier tariff agreement, which includes a 15% levy on South Korean goods and hundreds of billions of dollars in ￰12￱ President Lee Jae Myung personally raising the issue during his first meeting with Trump, no deal was struck to ease the ￰13￱ effect spread ￰14￱ MSCI gauge for developing currencies dropped 0.3%, with the South Korean won and Taiwan’s dollar taking the hardest ￰15￱ at Credit Agricole, led by Sebastien Barbe, said in a note: “While markets have started to pare optimism after the Jackson Hole symposium, Donald Trump’s announcement that he would remove Fed Governor Lisa Cook from her position has further suppressed risk sentiment in Asia today.” Meanwhile, China responded ￰16￱ is sending a senior trade negotiator to the U.

S., signaling that talks between the world’s two largest economies could resume after both sides paused their last major trade ￰17￱ beyond the gesture, no terms or timeline were made ￰18￱ yields react as markets pull back Back in Washington, Trump’s decision to move against Lisa Cook triggered a reaction in the bond ￰19￱ ￰20￱ yield curve ￰21￱ 2-year yield dropped nearly 2 basis points to 3.71%, while the 10-year yield rose to 4.296%. The 30-year yield increased even more, by 4 basis points, hitting 4.9%. Traders reacted quickly to the reshuffling threat at the ￰22￱ while prices and yields always move in opposite directions, the trend was clear: investors expect more long-term inflation risk or policy ￰23￱ Fed board currently has six sitting ￰24￱ Lisa Cook would drop that to five, still with a majority of non-Trump ￰25￱ if Stephen Miran is confirmed and Fed Chair Jerome Powell steps down after his term ends in May, Trump could appoint a fifth member, giving him full voting control of the ￰26￱ responded across the ￰27￱ Dow Jones Industrial Average futures fell 56 points (0.1%), while S&P 500 and Nasdaq-100 futures each dropped by 0.1%.

The ￰28￱ index, which tracks the greenback against a mix of major global currencies, slipped by 0.2%. Outside of the U. S., Hungary’s central bank, the National Bank of Hungary, held its main rate at 6.5% Tuesday, opting for currency stability over early ￰29￱ level remains tied with Romania for the highest policy rate in the European Union. Don’t just read crypto ￰30￱ ￰31￱ to our newsletter.

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