Trump's Latest Statement: No Intention to Fire Powell, but the Federal Reserve Should Cut Interest Rates

Overnight, U.S. stocks surged, with the Dow rising over 1,000 points, and Chinese concept stocks soaring.

In today's Asian early trading, U.S. stock index futures expanded their gains, with Nasdaq futures up 2% and S&P 500 futures rising over 1.8%.

U.S. Stocks Soar Across the Board

On Tuesday, U.S. stocks rebounded sharply, with the Dow closing up over 1,000 points, a gain of 2.66%. The Nasdaq rose 2.71%, and the S&P 500 index was up 2.51%.

Popular Chinese concept stocks strengthened, with the Nasdaq Golden Dragon China Index closing up 3.69%. Futu Holdings rose over 6%, Alibaba increased by over 5%, and Pinduoduo, Xpeng Motors, and NIO were up over 4%.

Analysts believe that U.S. Treasury Secretary Bessent's remark that the trade war is unsustainable fueled the sharp rebound in U.S. stocks on Tuesday.

According to media reports, a knowledgeable source stated that U.S. Treasury Secretary Scott Bessent told investors in a closed-door meeting on Tuesday that the trade war is unsustainable and that the situation could ease in the "not-too-distant future."

Trump's comments regarding Fed Chairman Powell are also attracting attention.

On the 22nd local time, U.S. President Trump stated that the Federal Reserve should lower interest rates, and he has no intention of firing Fed Chairman Powell, hoping that Powell will take more proactive actions on interest rates.

On April 17, Trump pressured Powell again, demanding an immediate interest rate cut from the Federal Reserve. Trump also stated that Powell's actions are always "too late and wrong." He said that Powell, who is acting too slowly, should have cut rates like the European Central Bank and that now an immediate cut is even more necessary. He also mentioned that it would be better for Powell to leave "sooner rather than later." Trump's threat to dismiss Powell has made the market uneasy.

Due to concerns that President Trump might fire Federal Reserve Chairman Jerome Powell, investors sold off U.S. stocks, bonds, and dollars, causing gold prices to soar to historic highs.

Federal Reserve Chairman Powell stated that the Fed will not yield to political pressure and will focus on combating inflation in the face of the complex economic situation brought about by the recent tariff policies of the Trump administration.