US stocks plunged last week as market fears intensified over economic slowdown and investor anxiety spiked following renewed attacks by President Trump on the Federal Reserve.

A deepening rift between President Trump and Federal Reserve Chair Jerome Powell has rattled financial markets, sending major US stock indexes tumbling again. Investors were spooked after Trump publicly demanded immediate rate cuts, accusing Powell of being too slow to respond to economic threats. At the same time, concerns over the economic fallout from ongoing tariffs and a global slowdown have pushed investors toward safe-haven assets like gold, which surged to a record high. The dollar also fell sharply, underlining fears of waning confidence in US economic stability.

US stocks and dollar slide after Trump attacks Fed chair Powell - BBC News

1. Explain why have US stock prices been falling, and how investor expectations and interest rate policy might be contributing to this decline.

2. How could the recent market volatility and political uncertainty surrounding Trump’s government and the Federal Reserve impact consumer and business confidence in the US economy?

3. Discuss the potential economic effects of a depreciation in the US dollar on imports, exports, inflation, and overall economic growth in the USA.