Overview

• President Trump announced he does not intend to remove Federal Reserve Chair Jerome Powell, despite recent public criticism and calls for rate cuts.
• Trump softened his stance on trade with China, suggesting a willingness to reduce tariffs as part of future negotiations, though details remain uncertain.
• Global markets saw modest recoveries, with Asian indices rising, following Trump's conciliatory remarks on monetary and trade policy.
• The IMF downgraded its 2025 global growth forecast to 2.8%, citing trade tensions and elevated tariffs as primary factors, with Germany projected to experience zero growth.
• Fed Chair Powell reaffirmed the central bank's independence, warning that high tariffs could increase inflation and slow economic growth, while maintaining a no-rate-cut stance.