Trump Says He Has 'No Plans to Fire' Federal Reserve Chair

US President Donald Trump stated he has "no intention of firing" Federal Reserve Chair Jerome Powell despite ongoing criticism. Trump expressed a desire for Powell to be "more active" in reducing interest rates, a stance that has led to heightened tension between the two. His comments come after the National Economic Council Director, Kevin Hassett, suggested Trump was considering whether to remove Powell.

During his presidency, Trump nominated Powell to lead the Fed, and President Joe Biden later re-nominated him for a second term. Trump has frequently criticised Powell for not cutting rates this year, following a previous reduction late last year. However, it remains uncertain whether Trump has the legal authority to remove the Fed chair, as no president has attempted such an action.

Amid growing trade tensions, Trump also addressed his optimism about improving trade relations with China. While he emphasised a "very nice" approach to negotiations, he noted that tariffs would not be reduced to "zero" even if an agreement was reached. The ongoing trade dispute, which includes high tariffs on Chinese goods, has led to significant economic concerns. The International Monetary Fund (IMF) recently downgraded the US economic growth forecast for the year, citing uncertainty caused by the trade war.

Trump's comments on both economic and trade matters have had an impact on global financial markets, with Asian stock indices showing gains after his remarks.