Trump eases investor fears with China trade optimism, denies plan to fire Fed chief

Meanwhile, in what appears to be an attempt aimed at appeasing market anxiety, U.S. President Donald Trump has reaffirmed prospects of a trade deal with China and rejected prospects of replacing the head of the Federal Reserve.

Lee Soo-jin has more.

U.S. President Donald Trump is moving to ease investor concerns, highlighting optimism over trade talks with China while dismissing reports that he plans to fire Federal Reserve Chair Jerome Powell.

Speaking to reporters in the Oval Office on Tuesday, local time, Trump emphasized that trade talks with Beijing were "going well," and added, once again, that he maintains a good relationship with Chinese President Xi Jinping.

"My relationship with President Xi is great. It was — it's been great for a long time. We've had a very good relationship, and I think we'll make a deal with China. If we don't make a deal, we'll set it. We'll just set the number."

He also acknowledged that the current 145 percent tariff on Chinese goods was high, but said that while this will be reduced "substantially," it will not be eliminated entirely.

The Trump administration is actively ramping up trade talks, with the White House press secretary saying his trade team would meet with 34 countries, just this week, and that 18 trade proposals were currently undergoing reviews.

"As I mentioned, there have now been 18 proposals and more than 100 countries around the world who are wanting to make a deal with the United States of America, So we feel everyone involved wants to see a trade deal happen, "

When Trump was asked whether he had plans to fire Powell, he said he "never did."

"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."

This marks a sharp departure from Trump's recent pressure on the Fed chair to cut interest rates, last lowered in December.

Just a day earlier, he escalated his criticism on Truth Social, calling Powell "a major loser" and suggesting he might remove him before his term ends in May 2026.

Markets responded positively to his most recent remarks, with major U.S. stock indexes closing significantly higher on Tuesday, rebounding from Monday's steep sell-off triggered by Trump's criticism of Powell.

Lee Soo-jin, Arirang News.