Trump supports the threat to dismiss Fed Fed chairman Powell, since the stock market rises | Donald Trump News

President Donald Trump of the United States has his threat to fire the head of the American Federal Reserve, after his widths against the central bank boss encouraged a decrease in the stock market and the dollar.

Trump’s comments on Tuesday seemed to exclude all on threatening plans to remove the chairman of the Federal Reserve Jerome Powell, who repeatedly criticized the US president because he did not go faster to lower interest rates.

“The press runs away with things. I don’t intend to fire him,” Trump told reporters in the White House.

“I would like to see that he is a little more active in terms of his idea to lower the interest rates. This is the perfect time to lower the interest rates. If he doesn’t, is it the end? No, that’s not.”

American share futures, which are traded outside of regular market hours, rose after Trump’s remarks, with contracts linked to the Benchmark S&P 500 and Tech-Vasdaq-100 which rises by more than 1.70 percent and 1.90 percent respectively.

The US dollar rose by more than 1 percent against important currencies.

Wall Street gathered earlier on Tuesday after the American Minister of Finance Scott Bessent told an Investors Conference that a trade war with China was ‘not sustainable’ and he expected the parties to de-calate and reach a deal at a certain moment.

Following the comments from Bessent said that Pers Secretary of the White House Karoline Leavitt said that the Trump government was “the scene for a deal with China” and “doing very well” when making progress in the direction of an agreement.

The S&P 500 closed more than 2.5 percent, while the Nasdaq finished more than 2.7 percent higher.

Asian markets opened higher on Wednesday, with the Japanese Nikkei 225 and Kospi in South Korea, about 2 percent and 1 percent respectively, in early trade.

The US and China are locked up in an effective trade embargo after Trump had imposed a rate of 145 percent on most Chinese goods, and China hit a 125 percent service on American exports as retribution.

Trump acknowledged Tuesday that the rate on China was “very high” and said that the rate would “fall considerably”.

Trump’s repeated attacks on Powell have an inexperienced financial markets in the light of the overwhelming economic consensus that the independence of the Federal Reserve is crucial for the health of the US economy.

Wall Street suffered some of the steepest losses of the year on Monday after Trump Powell had branded a “big loser” and “MR Too Late” because she has not supported cutbacks on the interest rate of the benchmark that influences the loan costs in the economy.

Trump’s comments came after he stated last week that Powell’s termination “cannot come fast enough” and his top economic adviser, Kevin Hassett, said the administration studied the possibility of his removal.

The Federal Reserve, who last reduced the bench market rate in December, expressed caution about reducing loan costs in the short term in the midst of concern that Trump’s major rates will generate inflation.

Trump has rejected the concern that his trade war will lead to higher prices, in contrast to the views of most economists, and argued that the cautious attitude of the central bank will slow down the economy.

Powell, who was nominated by Trump in 2017 and used to serve a period of four years by former US President Joe Biden, said that he would not resign if he was asked and stated that he could only be dismissed for crime.

The heads of independent federal agencies such as the Federal Reserve can only be removed for ’cause’ under the legal precedent that has been established by the US Supreme Court, although the Trump government challenges that standard in a case in a case in which the Merit Systems Protection Board and the National Labor Relations Board are involved.

Any movement to remove Powell before the end of his term of office would probably send shock waves by financial markets, given the long -term expectation that the Federal Reserve will release its decisions of political considerations.

“I would expect that I would see a dramatic fall in stock and bond markets,” Erasmus Kerting, Professor of Economy at Villanova University in Villanova, Pennsylvania, told Al Jazeera.

“The ‘Sell Sell USA’ strategy would become mainstream. This would also have an impact on the real economy, which leads to a recession.”