“I have no intention of firing him. I want to see him a little more active about the idea of ​​lowering interest rates,” Mr. Trump told reporters at the Oval Office on April 22 (local time).

This statement of the US President somewhat soothed the escalating tensions between the White House and Fed over the past time. The cooling of tensions has received immediate support from Wall Street, when the stock index increased by nearly 2% when trading returned on the evening of April 22. Shares, bonds and dollars have previously dropped sharply on April 21 after Mr. Trump repeatedly criticized Mr. Powell for not cutting more interest rates since the president took office.

Also in the question and answer with reporters, Mr. Trump expressed optimism that a trade agreement with China could “significantly cut” tariffs, which also motivated investors. He said an agreement will lead to a “significant” lower tariff for Chinese goods, a trade agreement will help the tax not “as close to” the current tariff level but “will not be equal to 0”.

Earlier, White House Economic Adviser Kevin Hassett on April 19 said President Trump and his assistants were studying whether they could fire Fed President Jerome Powell.

Mr. Trump’s criticism often comes with threats, such as the post on social media last week that Mr. Powell’s being fired from the position of the Fed chairman “could not take place quickly”. The threats from the US president caused fear in the financial market that considered Fed’s independence as an important factor to strengthen the reputation of the most influential central bank in the world and the foundation of global financial stability.

Although Mr. Trump seems to have put aside threats at this time, his criticism for the Fed’s interest rate policy is still fierce. “We think this is the perfect time to lower interest rates and we want to see Fed chairman lower interest rates early or on time, instead of delayed,” Mr. Trump emphasized April 22.