Trump has softened his stance on two major issues that were causing nightmares for Wall Street, as he indicated his openness to easing tariffs on China, and stated that he 'does not intend' to fire Federal Reserve Chairman Jerome Powell.
Wendy Edelberg, a senior fellow in economic studies at the Brookings Institution, said in an interview with CNN that the most damaging aspect of the tariffs themselves is the uncertainty created by the White House.
U.S. stocks rose on Tuesday and Wednesday, signaling market relief at assurances from close advisors to the president that his 145 percent tariffs on China would not last.
In a press meeting in the Oval Office on Tuesday, Trump also refrained from attacking Powell.
However, U.S. stocks are still down 11 percent since Trump took office in January.
Despite the recent rebound, the S&P 500 has lost nearly $7 trillion in value since it hit record levels just two months ago.
