LONDON, United Kingdom — A relief rally swept global equity markets Wednesday as comments by US President Donald Trump that he had «no intention» of firing the head of the Federal
Kingdom — A relief rally swept global equity markets Wednesday as comments by US President Donald Trump that he had “no intention” of firing the head of the Federal Reserve and his signals of possible tariff cuts for China reassured investors.
Global markets, already upended by Trump’s trade war, were hit at the start of the week by fears he was looking to remove central bank boss Jerome Powell for not cutting interest rates, calling him a “major loser” and “Mr. Too Late”.
Experts warned such a move would deal a blow to the Fed’s independence. It would also spark a crisis of confidence in the world’s top economy.
However, Trump tempered those fears on Tuesday. “I have no intention of firing him,” he said.
“These comments have given markets a sense of optimism that recent chaos might have peaked and we’re heading towards calmer waters,” said AJ Bell investment director, Russ Mould.
Wall Street’s main equity indices, which had already gained more than 2 percent on Tuesday, jumped again on Wednesday.
