'No intention of firing' Fed Chair—but want faster rate-cuts: Trump
What's the story
US President Donald Trump has clarified that he does not intend to fire Jerome Powell, the head of the US Federal Reserve. This comes after a string of critical comments from Trump against Powell. The President said he wanted Powell to be "a little more active" in cutting interest rates. Speaking in the Oval Office, he also gave an optimistic outlook on improving trade ties with China.
Trade relations
Trump's tariff policy and its impact
Trump's administration has imposed up to 145% tariffs on Chinese imports, with the President now saying these tariffs would "come down substantially, but it won't be zero." The policy is part of his economic agenda to bring factories and jobs back to the US.
Economic impact
Fed's stance amid Trump's criticism
The Fed hasn't cut interest rates this year, after a 1% point cut late last year. The decision has been heavily criticized by Trump, who called Powell "a major loser." Despite the President's recent comments, it remains unclear if he has the power to fire Powell. No other US President has tried that before.
Market response
Asian markets react positively to Trump's latest comments
After Trump's softening of his stance on Powell, most of Asia's major stock markets witnessed an uptick. Japan's Nikkei 225 index rose by about 1.9%, Hong Kong's Hang Seng rose by about 2.2%, while mainland China's Shanghai Composite fell slightly by less than 0.1%. The developments came after US shares gained on Tuesday, with the S&P 500 closing up by 2.5% and the NASDAQ rising by 2.7%.
Economic forecast
IMF downgrades US economic growth forecast
The International Monetary Fund (IMF) downgraded its forecast for US economic growth this year, due to uncertainty caused by tariffs. The IMF predicts the sharp increase in tariffs and uncertainty will lead to a "significant slowdown" in global growth. In response to Trump's actions, China retaliated with a 125% tax on US products and pledged to "fight to the end."