Trump Retracts Threat to Fire Fed Chair Powell, Markets Surge

President Donald Trump has reversed his earlier threats to fire Federal Reserve Chair Jerome Powell, stating he has 'no intention' of removing him despite ongoing criticism over the Fed's reluctance to cut interest rates. This shift in tone followed days of sharp attacks from Trump, who had previously described Powell as a 'major loser' and pushed for more aggressive rate reductions. Financial markets responded positively to Trump's comments, with US stock futures, the dollar, and major cryptocurrencies all rising sharply. The rally was further supported by US Treasury Secretary Scott Bessent's statement that the trade war with China is 'unsustainable' and both countries are expected to seek de-escalation. Trump also hinted at the possibility of reducing tariffs on Chinese imports, though not eliminating them entirely. The developments come amid legal debates over the president's authority to remove officials from independent agencies and ongoing concerns about the impact of trade tensions on global growth.