Trump Eases Market Jitters Amid Fed Chair Tensions

President Trump temporarily dialed down rhetoric on firing Federal Reserve Chair Jerome Powell, which sparked market positivity. Despite his criticisms of the Fed's rate policy, Trump expressed optimism about a potential trade deal with China to reduce tariffs. The Fed remains cautious about rate adjustments amid economic uncertainties.

President Donald Trump on Tuesday seemed to ease pressure on Federal Reserve Chair Jerome Powell, reducing speculation he might fire the central bank chief despite Trump's persistent criticism over interest rate policies. "I have no intention of firing him," Trump told reporters.

Trump voiced optimism about settling trade tensions with China, aiming for reduced tariffs. The president's recent rhetoric had unnerved financial markets, but the shift in tone provided a boost as equity futures surged by 1.8% after trading resumed on Tuesday evening.

While Trump's grievances with Powell remain, his rhetoric gave investors some relief. The Federal Reserve is cautious about further rate changes, balancing tariff impacts on inflation and economic growth. Traders now predict multiple rate cuts before year's end.

(With inputs from agencies.)