– I'm not going to fire it. I would like it to be a little more active when it comes to the idea of lowering interest rates. This is the perfect time to lower interest rates. And if he doesn't do it or is it over? No, this is not the end – said Trump, when asked about his intentions towards the head of the Fed during the swearing -in ceremony of the head of the securities and stock exchanges (SEC) Paul Atkins. Trump at the same time repeated his criticism of Powell, claiming that he was always late with decisions to change the feet.
Trump said these words a day after he wrote on his social networking site that if Powell immediately did not reduce interest rates, the economy will significantly slow down. Earlier he said that he was looking forward to Powell's “termination”, fueling speculation about the possible dismissal of the president of the Central Bank. Trump also argued that if he wanted to, Powell, whose term ends next year, would leave his position.
Trump talks about negotiations with China. “We will be very nice”
Trump's words scared the markets, causing further declines to Wall Street. Powell has signaled that he would stop at lowering interest rates, indicating uncertainty and possible acceleration of inflation caused by Trump's customs.
On Tuesday, Trump suggested that duties would be reduced after he concluded a trade agreement with China. The US president assured that he has great relations with his Chinese equivalent of XI Jinping and that he would be “nice” for China.
– I will not say: “Oh, I'm going to play hard with China.” No, we'll be very nice. They will be very nice and we will see what will happen. But ultimately they have to conclude a contract, otherwise they will not be able to trade in the United States, “he said.
Earlier, Bloomberg reported that the head of the Ministry of Finance Scott Bessent said at a closed conference organized by Bank JP Morgan, that he expected negotiations with China to be a “murder”. At the same time, he was to assess that no one thinks that the current state of affairs and astronomical duties could be kept for a long time. He was also to say that the US intention is not “decoupling”, i.e. breaking economic connections with the PRC, although the current level of customs – 145 percent. For products from China and 125 for US products – it is a de facto embargo.
