Overview

• President Trump announced plans to significantly reduce tariffs on Chinese imports, reversing his previous stance on aggressive trade measures.
• Trump publicly stated he has no intention of dismissing Federal Reserve Chair Jerome Powell, following days of speculation and criticism of Powell's policies.
• Global markets responded positively to the announcements, with U.S. and European equities rallying and the dollar stabilizing from recent lows.
• Treasury Secretary Scott Bessent emphasized that the U.S.-China trade conflict is unsustainable, fueling investor optimism for a potential agreement.
• Despite market recovery, the IMF's downgraded U.S. growth forecast to 1.8% and a 40% recession risk highlight ongoing economic challenges.