Overview

• President Donald Trump announced he has no intention of firing Federal Reserve Chair Jerome Powell, reversing earlier threats of removal.
• Markets responded positively, with the KBW Bank Index rising 3% by midday and major stock indexes posting significant gains.
• Trump continues to advocate for preemptive interest rate cuts, calling it an ideal time for monetary easing, despite the Fed's data-driven approach.
• The president also indicated that U.S. tariffs on China will be reduced substantially but not eliminated, contributing to market optimism.
• Federal Reserve officials, including Chair Powell, reaffirm their commitment to independence and data-based decision-making, rejecting political pressures.