Trump blinks and bends to pressure on FED and China tariffs

U.S. President Donald Trump is attempting to stabilize global markets by softening his stance on trade and monetary policy.

Key points include: Tariff Reduction

Trump announced that tariffs on Chinese imports will be significantly lower than the previously threatened 145%, signaling a de-escalation in the trade war with China. He emphasized that he will not “play hardball” and expects progress in U.S.-China trade negotiations.

Interfering in FED Policy

Trump expressed that he does not intend to fire Federal Reserve Chair Jerome Powell and urged the Fed to lower interest rates to support economic growth, reversing earlier criticisms of Powell’s policies.

Market Response: Negative

The softened rhetoric led to a positive market reaction, with U.S. stock futures rising after hours, reflecting investor optimism about reduced trade tensions and stable Fed leadership.

    These moves follow a period of market volatility caused by Trump’s earlier aggressive tariff threats and attacks on Fed independence, which had led to declines in U.S. stocks and the dollar.

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