Dow Jones Industrial Average surged over 1,000 points on Tuesday after the US President did some damage control. While addressing reporters at the Oval Office, Trump clarified that he has no plans to fire the Federal Reserve Chairman Jerome Powell.
“I have no intention of firing him,” Trump said on Tuesday. “I would like to see him be a little more active in terms of his idea to lower interest rates,” he added.
The S&P 500 index followed suit, rising over 3.17% or 167 points during the market's opening session. The CBOE volatility index, Wall Street's fear gauge, dropped another 9% on Tuesday. Tech-heavy index Nasdaq increased by more than 4% or 700 points. Major tech stocks, including Nvidia, Meta and Apple were trading in the green territory.
Trump's clarity on the matter comes after his aggressive criticism of Powell. Not forgetting that he called the Fed chairman a "Major Loser" and "Mr. Too Late" for cutting rates.
"Preemptive Cuts in Interest Rates are being called for by many. With Energy Costs way down, food prices (including Biden’s egg disaster!) substantially lower, and most other “things” trending down, there is virtually No Inflation," he said in a social media post just a few days back.
"With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW," he added.
China to Face Lower Tariffs?
That's what it seems like as of now. While addressing reporters at the Oval Office he said that tariffs on Chinese imports will come "substantially" down. However, he clarified that the base won't come to zero.
The US President acknowledged the fact that 145% tariffs on Chinese imports are indeed “very high”. “It will come down substantially. But it won’t be zero. It used to be zero,” he said.
During the past few weeks, both nations have been in an intense tit-for-tat retaliatory play on tariff stance, which eventually took a toll on investor sentiment globally. This was largely owing to escalating estimates of a prospective trade war between the US and the Dragon.
