Dollar gains as Trump denies plans to fire Fed Chair Powell

The dollar surged sharply before stabilizing on Wednesday after US President Donald Trump denied plans to fire Federal Reserve Chair Jerome Powell. The news boosted market sentiment, according to Reuters.

Earlier, investors had been concerned about the central bank’s independence due to Trump’s criticism, as he pushed for more aggressive rate cuts. However, on Tuesday, the president stated that he had no plans to remove Powell, though he still urged the chairman to take stronger action, the news agency reports.

The dollar also found support in comments from Trump and Treasury Secretary Scott Bessent, who hinted at a possible easing of trade tensions with China. The US president suggested that tariffs on Chinese goods could be lowered during negotiations, though he made it clear that a full removal was off the table.

At the same time, Washington is engaged in active tariff discussions with other global trading partners. 18 nations have already presented their proposals to the White House, with negotiations set to take place this week involving 34 countries, Reuters notes.