Trump Eases Tensions Over Fed Chair as Markets Rally

Washington, D.C. — President Donald Trump’s decision to back away from threats against Federal Reserve Chair Jerome Powell brought relief to financial markets on Wednesday. The President’s comments came amid growing concerns from senior advisers and major CEOs about the potential impacts of his tariffs on China.

Trump’s tariffs, particularly those aimed at China, have stirred anxiety about financial turmoil and possible shortages of goods, according to sources close to the discussions. On Tuesday, Trump told reporters in the Oval Office that he would not pursue efforts to remove Powell from his position.

This announcement led to a significant uptick in U.S. stocks. Following an earlier reassessment of the trade conflict with China by Treasury Secretary Scott Bessent, which suggested a move towards de-escalation, the markets surged. The Dow Jones Industrial Average rose by 420 points, marking a gain of 1.07%. The S&P 500 also increased by 1.67%, while the tech-heavy Nasdaq Composite experienced a climb of 2.5%.

Despite this progress, the three major indexes ended the day below their peak levels. The Dow, which had earlier soared close to 1,200 points, retraced its gains after Bessent’s commentary emphasized the complexity and potential duration of trade negotiations with China.