Trump says he has ‘no intention of firing’ federal reserve chair 

US President Donald Trump has moderated his recent remarks regarding China and the head of the US Federal Reserve following recent tensions as he advances his economic agenda. 

The individual stated that he has “no intention of firing” Jerome Powell despite having voiced criticism of the central bank’s leader on multiple occasions. However, he expressed a desire for Powell to take a more proactive approach to reducing interest rates. 

During Tuesday’s press briefing in the Oval Office, Trump expressed optimism regarding the potential for enhanced trade relations with China.The official stated that the tariffs imposed on Chinese imports would be significantly reduced, although he clarified that they would not be eliminated. 

The president’s tariffs aim to incentivize the return of factories and jobs to the United States. This initiative is a cornerstone of his economic strategy, alongside a proposed reduction in interest rates designed to lower Americans’ borrowing costs. 

Trump has increased tariffs on Chinese goods to 145%, prompting Beijing to take retaliatory action and raising concerns among economists about the potential global repercussions of an escalating trade conflict. 

During a press briefing on Tuesday, Trump expressed his intention to be “very nice” in negotiations with Beijing, aiming to secure a trade deal. 

US Treasury Secretary Scott Bessent has indicated that he anticipates de-escalating the trade war, describing the situation as unsustainable. In addressing remarks from China, he emphasized that the present circumstances were “not a joke.” 

The ongoing trade war has created significant volatility in global financial markets, further exacerbated by Trump’s remarks regarding Powell. 

This year, the Federal Reserve has refrained from cutting interest rates, following a reduction of one percentage point late last year, a decision that has drawn significant criticism from Trump. 

In a notable escalation, the president launched a series of sharp criticisms against the Federal Reserve chairman last week, labeling him “a major loser.”  Following the comments, stocks, bonds, and the US dollar sold off; however, markets have begun to recover from those initial losses. 

On Friday, National Economic Council Director Kevin Hassett revealed that President Trump is considering dismissing Jerome Powell, whom he initially nominated to head the Federal Reserve in 2017. In 2021, Joe Biden renewed Powell’s term. Whether Trump possesses the authority to dismiss the Federal Reserve chair remains uncertain. No other president of the United States has made such an attempt. 

On Wednesday, most significant Asian stock markets experienced gains as investors responded positively to key figures’ latest comments. The Nikkei 225 index in Japan increased by approximately 1.9%, while Hong Kong’s Hang Seng index rose by around 2.2%. In contrast, the Shanghai Composite in mainland China registered a slight decline of less than 0.1%. 

Following a positive trading day, US shares experienced notable gains on Tuesday. The S&P 500 concluded the session with an increase of 2.5%, while the Nasdaq saw a rise of 2.7%.US futures experienced an upward trend in overnight trading. Futures markets provide insights into the anticipated performance of financial markets upon their opening for trading. 

Investors have expressed concern about potential pressure on Powell to reduce interest rates, which could increase prices. This apprehension is heightened by the current trade tariffs, which are already perceived to be contributing to inflationary trends. 

Rising trade tensions among the world’s largest economies, coupled with US tariffs imposed on various nations, have sparked significant uncertainty regarding the state of the global economy. In recent weeks, financial markets have been thrown into turmoil due to these concerns. 

On Tuesday, the International Monetary Fund (IMF) announced a significant downgrade in the forecast for US economic growth this year, marking the most significant reduction among advanced economies. This adjustment is attributed to the prevailing uncertainty surrounding tariffs.The Fund has forecasted that the steep rise in tariffs and prevailing uncertainty will result in a “significant slowdown” in global growth. 

President Trump has enacted tariffs on goods imported from China, reaching as high as 145%.  Countries around the world are currently confronted with a comprehensive US tariff set at 10%, which will remain in effect until July. 

Last week, officials from his administration announced that implementing new tariffs, combined with existing ones, could result in levies on certain Chinese goods soaring to as much as 245%. 

In a significant move, China has imposed a staggering 125% tariff on American goods, declaring its intention to “fight to the end” in this escalating trade conflict. 

As of now, the Chinese government has not officially responded to the Trump administration’s recent remarks. 

On Wednesday, the state-controlled Global Times published an article featuring commentators who suggested that recent remarks indicate a growing awareness in the US regarding the detrimental impact of tariffs on the American economy.