New York: US President Donald Trump has appeared to soften his recent comments on China and the head of the US Federal Reserve after recent clashes as he pursues his economic agenda.
He said he has "no intention of firing" Jerome Powell after repeatedly criticising the head of the central bank, but he added that he would like Powell to be "a little more active" on cutting interest rates.
Speaking in the Oval Office, Trump also said he was optimistic about improving trade relations with China. He said the level of tariffs - or import taxes - that he had imposed on Chinese imports would "come down substantially, but it won't be zero".
The president's tariffs are an effort to encourage factories and jobs to return to the US. This is a pillar of his economic agenda - as is a cut in interest rates, aimed at reducing the cost of borrowing for Americans.
Trump has ratcheted the rate on Chinese goods up to 145 percent - sparking reciprocal measures from Beijing and warnings from economists about the global impact of a trade war. In his comments to reporters, Trump said he would be "very nice" in negotiations with Beijing - in the hope of securing a trade deal.
Earlier, US Treasury Secretary Scott Bessent reportedly said he expected a de-escalation of the trade war, which he said was unsustainable. Responding to comments from China, he said the current situation was "not a joke".
The trade war has led to turbulence in financial markets around the world - to which Trump's comments on Powell have also contributed.
The Fed has not cut rates so far this year, after lowering them by a percentage point late last year, a stance Trump has heavily criticised.
Last week, the president intensified his attacks on the Fed chief, calling him "a major loser". The comments sparked a selloff of stocks, bonds and the US dollar - though markets have since been recovering from those losses.
National Economic Council Director Kevin Hassett said on Friday that Trump was looking into whether it would be possible to sack Powell - who he first nominated to lead the central bank in 2017. Powell was then renewed in 2021 by Joe Biden.
