US President Donald Trump has retracted his threat to the launch of the US Federal Reserve Chairman, after he pushed his broad weapon against the Central Bank President to drown in the stock and dollar market.
Trump’s comments on Tuesday seemed to exclude any imminent plans to remove Federal Reserve Speaker Jerome Powell, who has been criticized by the US President over and over again for not moving faster to low interest rates.
“The press escapes things. I have no intention to shoot him,” Trump told reporters at the White House.
“I would like to see him more active in terms of his idea of lowering interest rates. This is the perfect time to reduce interest rates. If he does not, is it the end? No, it’s not.”
American stock futures, which are traded outside the regular market hours, increased after Trump’s comments, with contracts linked to the S&P 500 and NASDAQ-100 in NASDAQ-100 which rises more than 1.70 percent and 1.90 percent, respectively.
The US dollar rose by more than 1 percent against the main currencies.
Wall Street gathered earlier on Tuesday after US Treasury Secretary Scott Pessant told investors that the trade war with China was “unclean” and expected that the parties would ignore tensions and reach a deal at some point.
In the wake of Bessin’s comments, White House press secretary Caroline Levit said that the Trump administration was “preparing the road for an agreement with China” and “very good performance” in making progress towards an agreement.
The S&P 500 closed more than 2.5 percent, while NASDAC finished 2.7 percent higher.
Asian markets opened above Wednesday, with the Japanese Nikke 225 and South Korea increasing about 2 percent and 1 percent, respectively, in early trading.
The United States and China are being imprisoned in an effective commercial ban after Trump imposed a 145 percent tariff on most Chinese goods, and China slapped 125 percent on US exports in response to revenge.
Trump admitted on Tuesday that the tariff for China was “very high” and said the rate “would drop significantly.”
Trump’s repeated attacks on Powell did not have financial markets in light of the overwhelming economic consensus that the federal reserve independence is crucial to the health of the American economy.
Wall Street suffered from some of her most severe losses for this year on Monday after Trump Powell described the “main loser” and “Al -Master after it was too late” for not supporting the standard interest rate, which affects borrowing costs throughout the economy.
Trump’s comments came after he announced last week that the end of Powell “could not come quickly enough,” and his supreme economic advisor, Kevin Haysit, said that the administration was studying the possibility of removing it.
The Federal Reserve, which reduced the standard interest rate in December, has expressed caution against reducing borrowing costs in the short term amid fears that Trump’s sweeping tariff will lead to inflation.
Trump rejected the concerns that his commercial war would lead to high prices, unlike the opinions of most economists, and he argued that the central bank’s caution has risked to slow down the economy.
Powell, who was nominated by Trump in 2017 and used to spend another four -year penalty by former US President Joe Biden, said he would not resign if he was asked to and stated that he can only be expelled because of the poor poor.
The heads of independent federal agencies such as the Federal Reserve cannot be removed only for a “case” under a legal precedent defined by the US Supreme Court, although the Trump administration is drawing to the challenge of this court in a case that involves the entitlement protection council and the National Council for Labor Relations.
It is possible to send any step to remove Powell before the end of his term shocking waves through the financial markets, given the old long expectations that the Federal Reserve must make its decisions free of political considerations.
“I expect to see a dramatic decrease in stock and bond markets,” Erasmus Curting, Professor of Economics at Villanova University in Villanova, Pennsylvania, told Al -Jazeera.
The “sale of the United States of America” will become a prevailing. This will also have an impact on the real economy, which leads to recession.
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