Trump States He Doesn’t Plan to Dismiss Federal Reserve Chief

President Donald Trump stated he has no plans to dismiss Federal Reserve Chair Jerome Powell, despite his ongoing criticism. However, Trump expressed a desire for Powell to be more aggressive in lowering interest rates.

Speaking from the Oval Office, Trump also shared optimism about trade negotiations with China. Just days earlier, he had sharply criticized Powell, calling him “a major loser,” which triggered market volatility—though stocks, bonds, and the dollar have since rebounded.

There were reports suggesting Trump explored the legality of firing Powell, following comments from White House economic adviser Kevin Hassett. Trump originally nominated Powell to lead the Fed in 2017, and President Joe Biden reappointed him in 2021.

So far this year, the Fed hasn’t reduced interest rates, a move Trump has openly pushed for.

Legally, it remains unclear whether a U.S. president can remove a sitting Fed chair, and no president has attempted it before.

On the trade front, Trump said he would approach talks with China amicably and reduce tariffs if a deal is struck—though not completely.

U.S. Treasury Secretary Scott Bessent added that a reduction in trade tensions is expected, calling the current state unsustainable. Following these remarks, major Asian stock markets rose—Japan’s Nikkei gained 1.7%, Hong Kong’s Hang Seng 2.3%, and China’s Shanghai Composite edged up slightly.

U.S. markets also closed higher, with the S&P 500 climbing 2.5% and the Nasdaq up 2.7%. Futures trading pointed to continued gains.

Investors remain concerned that pressure on Powell to lower rates could fuel inflation, especially with tariffs already increasing costs.

Ongoing trade disputes, including broad U.S. tariffs on many countries, have sparked global economic uncertainty. The IMF recently downgraded its U.S. growth forecast more sharply than any other advanced economy, citing tariff-driven instability.

Trump has imposed tariffs as high as 145% on Chinese goods, with plans for broader 10% tariffs globally until July. Combined tariffs on Chinese imports could reach 245%. China has retaliated with 125% levies and pledged to keep fighting back.