The president of the United States, Donald Trump, declared Tuesday that he does not intend to say goodbye to the head of the Reserva Federal, Jerome Powellwhile indicating that there will be a “substantial” reduction in tariffs to China.
Both positions gave a relief to world markets, affected Monday by the decision of investors to leave US assets.
Trump’s criticism to the president of the Fed had bossed the three main US indexes downward.
The Republican reproaches Powell for his rates policy and that he has warned that the new tariffs probably upload inflation.
“I have no intention of saying goodbye”Trump declared in conciliatory tone hours later. “I would like to see it a little more active” To lower the rates because “It’s the perfect time to do it”he added.
“If you don’t, it’s the end?”Trump added, which on Monday described Powell as “Great Loser”.
Trump imposed 145% tariffs on numerous products imported from China, including a rate previously imposed by the alleged role of China in the fentanyl supply chain and then by practices that Washington considers unfair.
China responded with 125% tariffs on US assets. But Trump recognized 145% on Tuesday is a level “Very high”and “It will go down substantially”.
“It will not even be close to that number” although “Nor will it be zero”said the president.
His statement was given after the secretary of the Treasury, Scott Besent, assured Tuesday at an event behind closed doors that the tariffs equals a reciprocal commercial embargo.
-He anticipated that there would be a decala in the near future, according to a person who was in the event. For his part, Chinese President Xi Jinping declared Wednesday that tariff and commercial wars “They undermine the legitimate rights and interests of all countries, damage the multilateral trade system and impact the world economic order.”
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Meanwhile, White House spokeswoman, Karoline Leavitt, told reporters that the government “It is going very well regarding a potential commercial agreement with China”.
“The President and the Government are preparing the scenario for an agreement” and? “The ball advances in the right direction”.
But just as he reversed the tariffs, Trump also under the tone with the chief of the Fed, after his attacks against him caused the collapse of the markets.
Last week, the Republican millionaire said that “it was time for Powell’s mandate to end.”
The second mandate of the Fed Chief, appointed by Trump himself during his first presidency, ends in May 2026.
Powell warned that Trump’s trade war with tariffs could mean an important ballast for the US economy.
The IMF expects the US economy to grow 1.8% this year, 0.9 percentage points less than in its previous January estimate. An accelerated rate of rates of rates by the Federal Reserve would stimulate the economy by making credit more accessible.
But it would also run the risk of raising prices, in addition to the inflationary effect that tariffs could have. Given this complicated situation, Powell has opted for caution.
AFP
