Trump reassures markets: No ousting of Fed chair, eyes China tariff cuts

• Donald Trump does not plan to remove Federal Reserve Chairman Jerome Powell, despite having criticised him and called him a "major loser."
• The U.S. President is advocating for a reduction in interest rates, asserting that now is the optimal time for such a change.
• Trump pledges to approach trade talks with China in a "very nice" manner, which could lead to tariff reductions.

I would like to see him uh be a little more active in terms of his idea to lower interest rates. This is a perfect time to lower interest rates. Uh if he doesn't, is it the end? No. It's not, but it would be good timing. It would be it would it should could have taken place earlier, but no, I have no intention to fire him - said the President during the swearing-in of the new Chairman of the Securities and Exchange Commission (SEC), Paul Atkins.

He also reiterated his opinion that Powell responds too slowly to evolving economic conditions.

Trump referenced a social media post he made the previous day, cautioning that any further hesitations by the Fed Chairman regarding interest rates could hinder economic growth. He had even previously considered terminating Powell’s term early, which is scheduled to conclude next year.

The President's remarks once again stirred concern in the financial markets and contributed to declines on Wall Street. Jerome Powell, in response, emphasized prudence in monetary policy, addressing inflation risks that the Trump administration's tariffs could trigger.

On the same day, Trump suggested the possibility of reducing tariffs on China if a trade agreement is achieved. He emphasized that relations with Chinese President Xi Jinping are positive and that discussions are to continue in a friendly atmosphere.

I’m not going to say, ‘Oh, I’m going to play hardball with China, I’m going to play hardball with you, President Xi.’ No, we’re going to be very nice. We’ll see what happens. But ultimately, they have to make a deal, because otherwise they’re not going to be able to deal in the United States. And we want them involved - stated Trump.

Meanwhile, according to Bloomberg reports, Treasury Secretary Scott Bessent described the negotiations with China as "a grind" during a private meeting hosted by JP Morgan. He acknowledged that the current tariff rates - approximately 145% on goods from China and 125% on American products - are unsustainable in the long term but expressed that this does not indicate a desire to fully sever ties with Beijing.