A fresh wave of selling hit U.S. markets after President Donald Trump launched another barrage of criticism at Fed Chair Jerome Powell, calling for “preemptive cuts” and claiming inflation is no longer a concern. The S&P 500 (SPY) more than 2.2% at 10.57am, the dollar plunged to a 15-month low, and 10-year Treasury yields dropped to around 4.4%—all signs investors are growing nervous about the Fed's independence. Gold surged past $3,400 an ounce as money fled to safety, while the Swiss franc and Japanese yen both rallied. The worry? That Trump might try to remove Powell, shaking the foundation of U.S. monetary credibility.

Tesla (TSLA, Financial) sank 6.8% at 10.57am today ahead of earnings, with Wedbush's Dan Ives calling this a “code red” moment for Elon Musk. Ives urged Musk to pivot his attention away from government advisory roles and back to the core business as pressure mounts. Meanwhile, credit markets flashed warning signs: the cost to insure investment-grade debt jumped, and two companies canceled bond sales due to poor conditions. American Express was the only issuer that moved forward—barely.

Behind the scenes, capital is already rotating out of U.S. assets. Deutsche Bank noted Chinese clients are cutting exposure to Treasuries in favor of European debt, Japanese bonds, and gold. Even though legal experts say firing Powell isn't straightforward, just floating the idea rattles global confidence. Strategists warn this could open the door to accelerated de-dollarization. As one put it, markets could see “the most dramatic rush to the exit from U.S. assets imaginable” if Fed credibility cracks. That's no longer a tail risk—it's creeping into base-case territory.