Global Markets Rattle Amid Independent Fed Concerns

Asian stocks struggled as U.S. asset retreat put pressure on Wall Street and the dollar. President Trump's criticism of Fed Chair Powell fueled market instability, affecting global equities. Despite Asia's resilience, fears over Fed independence and potential U.S. recession contribute to economic uncertainty.

Asian stocks faced a challenging session on Tuesday, struggling to maintain stability after a marked exodus from U.S. assets put Wall Street and the dollar under pressure. The situation escalated as doubts over the Federal Reserve's independence added strain to the Treasury market, amid ongoing tariff concerns.

President Donald Trump's vocal criticism of Fed Chair Jerome Powell for not reducing interest rates led to a significant downturn on Wall Street, with indexes dropping around 2.4% on Monday, pushing the dollar to a three-year low. Economist Tapas Strickland remarked, "The 'sell America' trade was evident," highlighting risks to U.S. policy exceptionalism.

Markets braced for further tests with key earnings reports due this week, including Tesla's anticipated session following production delay reports affecting shares. Meanwhile, European markets saw mild declines, and U.S. bond yields edged higher amid fears of possible changes in Fed leadership influenced by political pressures.

(With inputs from agencies.)