Markets bounce after Trump says he won’t try to fire Fed Chair Powell
By YURI KAGEYAMA and MATT OTT, Associated Press Business Writers
The U.S. markets are set to open with significant gains, signaling relief after President Donald Trump reassured that he would not try to fire the head of the Federal Reserve.
Before the opening bell on Wednesday, futures for the Dow Jones Industrial Average surged by 1.9%, while S&P 500 futures and Nasdaq futures rose by 2.6% and 3% respectively.
President Trump’s dissatisfaction with the Federal Reserve’s reluctance to immediately cut interest rates led to speculations about the removal of Fed Chair Jerome Powell. However, Trump clarified on Tuesday that he has no intention of firing Powell.
Trump’s desire for rate cuts to stimulate the economy clashes with the Fed’s cautious approach due to economic uncertainties caused by tariffs and inflation exceeding the 2% target.
While legal scholars believe Trump cannot remove Powell from the Fed’s board of governors, the debate continues over whether a president can dismiss him as chair.
Markets also responded to U.S. Treasury Secretary Scott Bessent’s comments, predicting an easing of the ongoing tariffs standoff with China.
Wall Street anticipates fluctuations as investors hope for trade deals to reduce tariffs, with fears of a recession if such agreements are not reached promptly.
Tesla saw a rebound after Elon Musk’s announcement to focus more on running the company, overshadowing declining profits in the first quarter.
Major tech stocks like Nvidia, Apple, and Meta experienced gains, with European Union fines impacting their performance.
Overseas, European and Asian markets saw positive movements, with energy trading showing improvements despite a challenging month for crude prices.
The U.S. dollar weakened against the Japanese yen and the euro, reflecting the market’s response to geopolitical and economic developments.
Overall, the financial landscape remains influenced by global events, trade negotiations, and economic indicators.
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