Trump Shifts To Friendlier Tone Toward Fed's Powell: 'I Have No Intention Of Firing Him'
President also says tariffs on Chinese goods will 'come down substantially'
President Donald Trump on Tuesday toned down his rhetoric toward Federal Reserve Chairman Jerome Powell, saying he has no plans to try to remove the head of the nation's central bank.
"I have no intention of firing him," Trump told reporters in the Oval Office of the White House.
"I would like to see him be a little more active in terms of his idea of lowering interest rates - this is the right time to lower rates," the president added. "If he doesn't do it, is that the end? No, it's not. But this would be the right time."
Trump's friendlier tone toward Powell comes after more strident talk in recent days. On Thursday, the president said in a social media post that "Powell's firing can't come fast enough," and he said Monday that "the economy could slow down unless Mr. Too Late, a big loser, lowers rates, NOW."
Additionally, Trump's top economic adviser Kevin Hassett said Friday that Trump's team is continuing to study the option of firing Powell.
Monday's stock plunge was blamed on concerns about the erosion of Fed independence, but equities bounced back on Tuesday, and stock futures (ES00)( YM00 ) gained within hours of Trump's comments about Powell.
Read more: Could Trump fire Powell? Congress may be powerless to stop him.
In his remarks Tuesday, Trump also sounded optimistic about making a trade deal with China, which faces Trump's 145% tariffs, known as Trump 2.0. He said the tariff rate would "come down substantially, but it won't go to zero." Earlier, several published reports said Treasury Secretary Scott Bessent had predicted a "de-escalation" in the trade war with China. Additionally, White House press secretary Karoline Leavitt told reporters that Trump and other administration officials were "setting the stage for a deal with China." (Newsmaker23)
Source: Dow Jones Newswires
