US Stock Markets Rally Amid Trump’s Latest Remarks on Fed’s Powell, China

The president has ‘no intention’ of firing Federal Reserve Chair Jerome Powell and will not ‘play hardball’ with China, he said.

Traders work on the floor of the New York Stock Exchange in New York City on April 17, 2025. Spencer Platt/Getty Images

U.S. stocks surged on April 23, as President Donald Trump clarified his stance on Federal Reserve Chair Jerome Powell and China tariffs.

The Dow Jones Industrial Average, an index of blue-chip stocks, advanced by more than 900 points, or more than 2 percent.

The broader S&P 500 Index jumped more than 100 points, or 2.5 percent. The tech-heavy Nasdaq Composite Index soared by close to 600 points, or 3.6 percent.

Following the weeks-long tariff-driven decline in the financial markets, Wall Street is looking to build on its April 22 gains after all three leading benchmark averages climbed by nearly 3 percent.

Despite Trump’s recent criticisms of the central bank chief, the president confirmed to reporters at the Oval Office on April 22 that he has “no intention” of firing Powell before his term expires in May 2026.

“The press runs away with things. No, I have no intention of firing him. I would like to see him be a little more active in terms of his idea to lower interest rates,” Trump said at a swearing-in ceremony for new Securities and Exchange Commission Chairman Paul Atkins.

Over the past several days, Trump highlighted his frustration with the Federal Reserve’s lack of monetary policy easing, criticizing Powell.

“'Preemptive cuts’ in interest rates are being called for by many,” Trump said in an April 21 Truth Social post, adding that there could be “a slowing of the economy” unless Powell lowers interest rates now.

The stock market plummeted after these comments.

“Stocks, bonds, and the U.S. dollar all dropped on Monday following an escalation of verbal attacks by President Trump on Fed Chair Powell and that created yet another source of policy uncertainty for markets to consider (something we absolutely don’t need right now),” Tom Essaye, founder and president of Sevens Research Report, said in a note to The Epoch Times.

In an April 17 Truth Social post, Trump urged the Fed to follow the European Central Bank and lower interest rates.

He later reiterated his frustrations with Powell.

“I don’t think he’s doing the job. He’s too late, always too late and slow,” Trump told reporters. “And I’m not happy with him. I let him know it, and if I want him out, he’ll be out.”

Powell and his colleagues have left interest rates unchanged this year in the range of 4.25 percent to 4.50 percent. The Fed has paused its rate-cutting cycle for three consecutive meetings to observe the economic landscape and await greater clarity from the administration’s policy changes.

The Fed will hold its next two-day policy meeting in May, and investors overwhelmingly expect the institution to leave rates alone. According to the CME FedWatch Tool, the futures market thinks that the rate-setting Federal Open Market Committee will follow through on a quarter-point cut in June.

White House economic adviser Kevin Hassett revealed to reporters that the administration “will continue to study” whether the president can terminate Powell.

Federal Reserve Chairman Jerome Powell testifies before the House Committee on Monetary Policy in Washington on Feb. 12, 2025. Madalina Vasiliu/The Epoch Times

Powell stated in November 2024 that presidents are “not permitted under the law” to terminate members of the U.S. central bank.

Meanwhile, traders welcomed the White House’s more cordial approach to dealing with China.

Trump said he does not plan to “play hardball” with Chinese leader Xi Jinping, adding that his administration will “be very good to China.” A new agreement, Trump noted, will not include tariffs “anywhere near” as high as 145 percent, as the current tariff rate “will come down substantially,” he said.

“They are going to do very well, and I think they’re going to be happy, and I think we’re going to live together very happily and, ideally, work together,” Trump told reporters at the Oval Office.

The president’s remarks came shortly after Treasury Secretary Scott Bessent told a group of investors at a closed-door meeting in Washington that U.S.–China trade tensions could de-escalate soon.

Bessent, likening the current situation to an embargo amid sky-high tariffs, said he anticipates de-escalation by both sides in the “very near future,” a person in the room told The Epoch Times.

In response to the up to 245 percent U.S. tariff rate on China, the Chinese regime has imposed levies of 125 percent on goods arriving from the United States.

Tesla Watch

Meanwhile, shares of Tesla surged following the electric vehicle maker’s disappointing first-quarter earnings report on April 22.

While the company reported a 71 percent decline in profits, the focus was on CEO Elon Musk’s declaration that he would scale back his involvement in the federal government’s Department of Government Efficiency (DOGE).

During an earnings call with analysts and shareholders, Musk revealed that he will likely spend only “a day or two per week” on DOGE.

“I think I‘ll continue to spend a day or two per week on government matters for as long as the president would like me to do so and as long as it is useful,” he said. “But starting next month, I’ll be allocating probably more of my time to Tesla now that the major work of establishing the Department of Government Efficiency is done.”

The stock increased by more than 7 percent at the opening bell.

Treasury Yields Fall, Dollar Rises

The U.S. Treasury market was mostly in the red, led by sharp declines in long-term interest rates.

The benchmark 10-year bond yield fell by more than 10 basis points to below 4.29 percent. The 20- and 30-year yields also erased about 15 basis points, to 4.76 percent and 4.72 percent, respectively.

The U.S. dollar index edged up by 0.2 percent to above 99.00. The index, a gauge of the greenback against a weighted basket of six currencies, has plunged this year, falling by close to 9 percent.

A potentially recovering U.S. dollar may want to thank the Treasury secretary, according to ING strategists.

“Treasury Secretary Scott Bessent threw a lifeline to fragile U.S. sentiment with conciliatory remarks on the U.S.–China trade war,” they said in a note.

“Bessent’s seemingly conciliatory comments on a U.S.–China trade de-escalation could favor a U.S. dollar stabilization.”