Wall Street Surges as Trump Signals Tariff Relief and Fed Stability

Wall Street saw a significant rally in equities after U.S. President Donald Trump alleviated market fears by stating he had “no intention” of firing Federal Reserve Chairman Jerome Powell.

Trump also signaled a drastic reduction in tariffs on China, which had previously soared to 145%, easing concerns of an escalating trade war. This announcement, reported by FOX 28 Spokane, followed days of market turmoil driven by Trump’s earlier criticisms of Powell and aggressive tariff policies, which had sparked fears of a global economic downturn.The Dow, S&P 500, and Nasdaq each gained over 2%, reflecting investor relief. Trump’s comments countered earlier threats to remove Powell for not cutting interest rates, a move that could have undermined the Fed’s independence and triggered a broader crisis, as observers warned.

His softened stance on China tariffs, with promises of a “substantial” reduction, also boosted optimism, particularly in tech-heavy markets like Hong Kong, where firms such as Alibaba and Tencent surged. However, posts on X revealed mixed sentiment, while some celebrated the market uptick, others questioned Trump’s consistency, given his history of policy flip-flops, as noted by Reuters.This rally comes amid broader economic concerns.

The International Monetary Fund recently slashed its global growth outlook to 2.8% for 2025, citing Trump’s tariff policies as a key factor. Critics argue that while the tariff reduction may provide short-term relief, the underlying uncertainty of Trump’s trade strategy could still hinder long-term growth.

For now, Wall Street’s rebound reflects cautious optimism, but the sustainability of this rally hinges on whether Trump’s promises translate into stable policy actions.

Equities rallied with Wall Street on Wednesday after Donald Trump said he had “no intention” of firing the head of the Federal Reserve and that eye-watering tariffs on China would be slashed drastically.https://t.co/9sCmzGqrbN

— Punch Newspapers (@MobilePunch) April 23, 2025