Trump’s latest reversals are here from a little earlier:
- Trump backing away from tariffs, backing away from firing Powell – will it last?
- Trump says he has no plans to Fire Federal Reserve Chair Powell
- Trump says he is going to be very nice to China, they have to make a deal
On China, we await how officials there react to what appears to be an offer of accommodation from Trump.
On Powell, Trump’s threats to fire him were a major negative for markets:
- Trump posted on Truth Social last week that Powell’s “termination cannot come fast enough.” This was taken as Trump looking to remove Powell before his term expires next year
- Indeed, Trump’s top economist, Kevin Hassett, told reporters the White House was studying the possibility of removing Powell
- And Trump attacked Powell, “Mr. Too Late, a major loser” in a social media post onl Monday
Trump’s cave in is likely to be a result of his realsing the legal and market difficulties he would encounter in firing Powell.
This article was written by Eamonn Sheridan at www.forexlive.com.