Trump says no plans to fire Fed chair, open to deal with China
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The news: US President Donald Trump says he has no plans to fire Federal Reserve chair Jerome Powell, but he wants interest rates to be lower. He also indicated his administration is open to a trade deal with China, Reuters reported.
The numbers: The news pushed US stock futures higher in after hours trading. Dow Jones e-mini futures are up 1.26% at 8.40am AEST, while S&P500 e-mini futures rose 1.39%. All three major stock indices had rebounded more than 2% in normal trading on hopes that US-China trade tensions could ease soon.
The context: Trump’s remarks could help defuse tensions over the US central bank chief's future. He has been severely critical of Powell for not further cutting interest rates since Trump resumed office in January and last week ramped up his attacks, posting on social media that Powell's termination as Fed chair "cannot come fast enough," spooking financial markets.
Trump also told reporters that total tariffs on China’s exports to the US will be lower than the current rate of 145%. He said tariffs on imports from the country would fall significantly following a deal but not to zero, backing earlier remarks by US Treasury Secretary Scott Bessent that the tariff standoff with China is “unsustainable” and he expects the situation to de-escalate. Earlier this month, Washington ramped up tariffs on China’s exports to the US from 10% to 145%, while China has retaliated with 125% tariffs on US goods.
What they said: "I have no intention of firing him," Trump told reporters in the Oval Office, referring to Powell. "I would like to see him be a little more active in terms of his idea to lower interest rates."
The source: Reuters
