Trump Signals Tariff Reductions and Supports Fed Chair Powell Amid Trade Tensions

Trump Signals Tariff Reductions and Supports Fed Chair Powell Amid Trade Tensions

Last Updated Apr - 23 - 2025, 02:01 PM | Source : Fela News

President Trump announced no plans to fire Fed Chair Jerome Powell and signaled substantial tariff reductions on China, offering relief to global markets. The U

On Tuesday, President Donald Trump stated he had no plans to fire US Federal Reserve Chairman Jerome Powell and hinted at a “substantial” reduction in tariffs on China, moves that calmed global markets rattled by his aggressive trade policies. Trump's previous criticisms of Powell, especially over the Fed's warnings about tariffs potentially fueling inflation, had raised concerns that he might remove him.

Trump expressed a desire for the Fed to lower interest rates, calling it a "perfect time" to do so, though he added that if Powell doesn’t act, it wouldn’t be the end. Since Trump’s return to office in January, the US has imposed 145 percent tariffs on many Chinese products, citing China’s role in the fentanyl supply chain and other unfair practices. In response, Beijing has levied counter-tariffs on US goods. Trump acknowledged that 145 percent was "very high" and promised the tariffs would "come down substantially," though not to zero.

At a JPMorgan Chase event, Treasury Secretary Scott Bessent indicated that tariffs functioned like a reciprocal trade embargo but expected de-escalation soon. Wall Street reacted positively, and Asian markets rallied the following day. Meanwhile, White House Press Secretary Karoline Leavitt stated that progress on a potential trade deal with China was moving in the right direction.

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