Trump says he has ‘no intention of firing’ Fed Chair Jerome Powell, US markets jump | World News
US President Donald Trump has backed off from his earlier threats and said on Tuesday that he had “no intentions of firing” Federal Reserve Chair Jerome Powell, after the president repeated his criticism of Powell for not cutting the interest rates.
Trump had earlier called Powell a “major loser” in a post on Truth Social and had suggested that he could fire the Federal Chair for being rigid towards the interest rate issue.
It was Trump who had nominated Powell to the Federal Reserve Chair in 2017 during his first tenure as president. Recently, the Republican president has mounted pressure on the Federal Chair to lower the interest rates but Powell had said that he would not rush with the decision.
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“I have no intention of firing him. I would like to see him be a little more active in terms of his idea to lower interest rates,” Trump told reporters in the Oval Office on Tuesday, reported Reuters.
The de-escalation Trump bright cheers in the US stock market as equity index futures on Wall Street jumped 2% as the trading resumed on Tuesday evening. Dow futures was trading higher with more than 500 points or 1.3%, S&P 500 witnessed gains of 1.6% and Nasdaq futures rose 1.8%.
The markets also saw green light after US Treasury Secretary Scott Bessent signalled that America could ease off its trade war tension with China, as President Trump stated that he doesn’t seek to punish China with any further tariff escalation.
Trump also said that a trade deal with China could “substantially” cut tariffs, hence the optimism of the US president also gave a boost to the investors. Trump added that a trade deal with China would “substantially” lower tariffs on Chinese goods.Story continues below this ad
The US president suggested it was the “perfect time” to lower the interest rates.
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