After stock shock, Trump backs down on China tariffs and firing Fed chief – National & International News – TUE 22Apr2025
After stock shock, Trump backs down on China tariffs and firing Fed chief Powell.
VP Vance’s India visit marred as gunmen kill at least 27 in Kashmir tourist spot.
After stock shock, Trump backs down on China tariffs and firing Fed chief Powell
US markets and the global buying power of the dollar dipped further both yesterday and today following remarks by President Trump last week suggesting that he was looking for a way to fire Federal Reserve Chair Jerome Powell. Trump first nominated Powell to the position in 2018, with Biden doing likewise four years later in 2022. Powell’s current term as head of the central bank will end in May 2026. While Presidents can nominate Fed chairs, they cannot normally dismiss them without cause.
Investors were already shaken by Trump’s tariffs and the uncertainty they’ve created. They reacted even more poorly to attacks on Powell, who they see as a steady hand in an economically volatile time.
This afternoon, Trump publicly reversed his position, saying he had “no intention” of firing Powell. Trump reiterated that he would like for Powell to lower interest rates, but added that Powell would not be ousted if he chose not to.
Markets rallied slightly towards the end of the day following this news and rising hopes of easing tariff tensions. Trump said today that his current 145% tariff on China would “come down substantially, but it won’t be zero”. This announcement comes the day after Trump met at the White House with the leaders of major retailers, including Walmart, Home Depot, Target, and Lowes. All of these companies would be heavily affected if the current tariff rate on China were to continue, but the effect would be potentially devasting for smaller retailers.
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Indian-controlled Kashmir: VP Vance’s India visit marred as gunmen kill at least 27 in tourist spot
Unidentified gunmen targeted and killed at least 27 people and injured over a dozen others in a popular tourist destination in Indian-controlled Kashmir. The gunmen wore military style fatigues and carried automatic weapons. Reports indicate that most of the victims were tourists. It is not clear if there are any foreign nationals among the dead.
Kashmir is a Muslim-majority region which is administered partly by India and partly by neighboring Pakistan. The Himalayan region has long been plagued by violence perpetrated by armed groups, demanding either Kashmiri independence or for the entire region to be absorbed into Pakistan. In recent years, India’s Hindu nationalist government has tightened its military control over the part of the region that it administers.
While the motivation for today’s slaughter remains unknown, the timing is significant. Vice president JD Vance happens to be visiting India, where he has been meeting with India’s Prime Minister Narendra Modi. Vance’s wife Usha is herself an Indian-American whose parents are Hindus.
President Trump, who has long had good relations with Modi, posted condolences on his TruthSocial platform today and also called Modi to express his condolences personally.
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