Trump backs off Powell firing, hints at China tariff cuts

• Donald Trump does not intend to fire Federal Reserve Chairman Jerome Powell, even though he has publicly criticized him as a "major loser."
• The U.S. President is advocating for a reduction in interest rates, claiming it is the perfect time for such a move.
• Trump has pledged to be "very nice" in trade talks with China, which could potentially lead to tariff reductions.

II 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.

At the same time, he reiterated his belief that Powell reacts too late to changing economic conditions.

Trump also referenced a social media post he made the previous day, warning that further hesitations by the Fed Chairman regarding rates could slow down the economy. He even suggested in the past that he considered ending Powell’s term early, which is set to expire next year.

The president's statements once again caused concern in the financial markets and contributed to declines on Wall Street. Jerome Powell, on his part, announced caution in monetary policy, citing the inflation risks that the tariffs imposed by the Trump administration could trigger.

On the same day, Trump suggested the possibility of reducing tariffs on China if a trade agreement is reached. He emphasized that relations with Chinese President Xi Jinping are good and that talks are expected to proceed in a nice 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 slog" during a closed meeting organized by JP Morgan. He acknowledged that the current tariff levels—approximately 145% on goods from China and 125% on American products—are unsustainable in the long term, but this does not mean a desire to completely sever cooperation with Beijing.