Daijiworld Media Network - Washington

Washington, Apr 23: President Donald Trump on Tuesday withdrew his fiery threats to remove Federal Reserve Chair Jerome Powell, offering a much-needed breather to jittery financial markets and visibly easing tensions among White House advisers.

“I have no intention of firing him,” Trump said in the Oval Office, stepping back from a week of intense criticism that had unnerved his top aides and rattled Wall Street. The president’s remarks came after several of his economic advisers, including Treasury Secretary Scott Bessent, warned that ousting Powell could unleash economic chaos on par with the ongoing trade war with China.

Markets reacted positively to the president’s reversal. Dow futures surged by 750 points, while the S&P 500 and Nasdaq futures jumped 2.6% and 3% respectively. Investors also returned to US Treasury bonds, pushing the 10-year yield down to 4.3%.

Top administration officials reportedly breathed a sigh of relief. Many had grown uneasy about Trump's escalating rhetoric, including a social media post last week where he declared Powell’s “termination cannot come fast enough.” Trump's economic team, including Bessent and chief adviser Kevin Hassett, had advised against any attempt to oust the Fed chair, citing legal risks and potential financial instability.

Still, the president’s repeated public attacks calling Powell a ‘major loser’ and accusing the Federal Reserve of politically motivated decisions continued to raise concerns. At a press briefing, White House press secretary Karoline Leavitt defended Trump’s critiques, suggesting the Fed had acted politically by lowering rates late in the Biden administration but not under Trump.

“There’s nothing wrong with the president expressing his views,” Leavitt said. “He believes interest rates should be lower to help the economy.”

Hassett, who once supported the Fed’s independence, has reportedly reconsidered, questioning whether the central bank is truly operating without political bias.

Despite the internal debates and Trump's combative stance, officials had long concluded that removing Powell would trigger legal and economic blowback. On Tuesday, Trump himself seemed to affirm that view, telling reporters, “I never did” seriously consider firing Powell.

The remarks brought temporary calm, but lingering doubts remain over how the Trump administration will handle disagreements with the central bank in the months ahead.