Trump Signals U-Turn, Says China Levy Will Drop; Won't Fire Fed Chief

Trump Had Slammed Powell for Warning Tariffs Could Fuel Inflation

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US President Donald Trump on Tuesday said he had no plans to fire the Federal Reserve chief, in apparently conciliatory remarks after berating him and triggering market turmoil.

Wall Street investors dumped US assets on Monday, with all three main indexes down after Trump took a series of swipes at Jerome Powell, head of the US central bank.

The president had criticized Powell for warning that the White House's sweeping tariffs policy would likely reignite inflation. "I have no intention of firing him," Trump said Tuesday. "I would like to see him be a little more active in terms of his idea to lower interest rates--it's a perfect time to lower interest rates. "If he doesn't, is it the end? No." Trump's recent outbursts against Powell had fanned concern that he would oust him, and White House economic advisor Kevin Hassett said last week the president was looking at whether he could do so.