Trump hints at softening China tariffs and says no plan to sack Fed boss Jerome Powell

It seems that US President Donald Trump relieves his recent comments on China and the head of the US Federal Reserve after the recent clashes while following his economic agenda.

Trump said he had “no intention to launch” Jerome Powell after he has repeatedly criticized the Central Bank president, but added that he would like to be Powell “more active” to reduce interest rates.

Speaking at the Oval Office on Tuesday, Trump also said he was optimistic about improving trade relations with China.

He said that the level of definitions – or import taxes – imposed on Chinese imports “will decrease significantly, but it will not be zero.”

The president’s tariff is an attempt to encourage factories and jobs to return to the United States. This is the column of its economic agenda – as in reducing interest rates, aims to reduce the cost of borrowing for Americans.

Trump liquidated the average of Chinese goods of up to 145 % – which sparked mutual measures from Beijing and warnings of economists about the global impact of the trade war.

In his comments on correspondents on Tuesday, Trump said he would be “very nice” in negotiations with Beijing – hoping to secure a commercial deal.

Earlier, US Treasury Secretary, Scott Payett, said he expected to cancel the escalation of the trade war, which he said was not sustainable. In response to China’s comments, he said the current situation is “not a joke.”

The trade war has led to turmoil in financial markets around the world – which Trump’s comments also contributed to Powell.

The Federal Reserve has not yet reduced the rates this year, after it was reduced by a percentage in late last year, a position that strongly criticized Trump.

Last week, the president increased his attacks on the Federal Reserve Chairman, describing him as a “great loser.” Comments sparked a sale of stocks, bonds and US dollar – although markets have recovered from these losses.

The director of the National Economic Council, Kevin Haysit, said on Friday that Trump was looking into whether it was possible to establish Powell – who was nominated for the first time to lead the central bank in 2017. Then Powell was renewed in 2021 by Joe Biden.

It is not clear whether Trump has the authority to launch the Fed Reserve Chair. No other American president tried to do so.

Most of the major Asian stock markets were above Wednesday, when investors seemed to welcome the latest notes.

The Japanese Nikkei 225 index rose about 1.9 %, the Hong Seng team in Hong Kong increased by approximately 2.2 %, while the Chinese Shanghai compound in China decreased less than 0.1 %.

This came after the shares of the United States made gains on Tuesday, as the S&P 500 ended on Tuesday’s session by 2.5 % and the Nasdaq Stock Exchange increased by 2.7 %.

Futures in the United States were also trading overnight. Futures markets give an indication of how to perform financial markets when opening them for trading.

Investors fear that pressing Powell to reduce interest rates may cause high prices while commercial tariffs are already seen enhancing inflation.

Trade tensions between the largest economies of the world, as well as American definitions in other countries around the world, have caused uncertainty over the global economy. These concerns have raised the turmoil in financial markets in recent weeks.

Tuesday, Expectations of economic growth in the United States for this year The largest level of advanced economies was granted by the International Monetary Fund (IMF) due to the uncertainty caused by the customs tariff.

The fund predicted that the sharp increase in definitions and uncertainty will lead to a “great slowdown” in global growth.

Trump imposed taxes of up to 145 % on imports from China. Other countries are now facing a 10 % American blanket tariff until July.

His administration said last week that when the new tariffs are added to those existing, fees on some Chinese goods can reach 245 %.

China fell with 125 % taxes on products from the United States and pledged “fighting to the end”.

The Chinese government has not yet officially responded to the latest statements from the Trump administration.

However, an article in the state -controlled Global Times reported on Wednesday commentators who said that the observations showed that the United States began to realize that the customs tariff was more harmful than the benefit of the American economy.