US stocks jump after Trump soothes Fed independence worries

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American stocks rose sharply on Wednesday after Donald Trump said he had no plans to shoot at Federal Reserve Speaker Jay Powell, which reduced concerns about the independence of the US central bank that shook the markets this week.

The S&P 500 increased by 2.6 percent late in the morning in New York, while the US Treasury and European stocks made strong gains.

The moves that were built in a decline of 2.5 percent on Tuesday for the decline in Wall Street, as Trump pointed to a possible mitigation reduction with Beijing, saying that the definitions of Chinese goods “will decrease significantly.”

The president also repeated his repeated complaint that the federal reserve needs to reduce borrowing costs, but he added: “I do not want to talk about it because I have no intention to shoot. [Powell]”

“The markets will welcome the vote of confidence (increasing), but the damage caused to the independence of the Federal Reserve has occurred,” Dario Perkins said, from TS Lombard consultations, in a note to the clients. “Trump wants price cuts, but his evil attacks on Powell made it difficult for the central bank to deliver it.”

The US dollar has gained 0.6 percent against a basket of their peers, although the currency is still hovering around its lowest levels after more than 8 percent decreased this year so far.

Broad Stoxx EUROPE 600 increased by 1.8 percent on Wednesday, and the DAX index in Germany extends recent gains with an increase of 3.2 percent.

The US Treasury’s return for 10 years fell 0.05 percentage points to 4.34 percent, and continued to decrease the latter after sharp increases earlier this month. The bond returns are inversely transmitted to prices.

Wednesday’s movements come after a volatile month for financial markets after the so -called “Tahrir Day” ads, which are called “Liberation Day”, which led to a sharp decline in American stocks. S&P 500 is still less than 7 percent so far this year despite its recovery this week.

Technology shares have been hit more difficult, as a compound on the Nasdaq Stock Exchange has made more than 12 percent since the beginning of the year. Nasdak rose 3.7 percent on Wednesday.

Despite this week’s gains, investors remained cautious. “There may be short -term mitigation because the risk of the tail to detonate the American economy has decreased, but has the level of uncertainty suddenly went?” Said Max Keitner, the largest in HSBC.

The markets were shook last week after Trump, who was a continuous critic of Powell, indicated that he believed that he could reject the Federal Reserve Chair before the end of his term in May 2026.

Salman Ahmed, the global president to allocate total assets and the allocation of strategic assets in Fidelity International, described the confrontation between the White House and FED as a “manifestation of basic tension” in the economy.

He said that Trump’s tariff policies had “pressured the double mandate” by increasing inflationary pressures with growth damage as well.

Ahmed said: “This tension will not disappear mainly until we know where the definitions will stabilize.” “The daily flow of news will lead to high fluctuations.”

Additional reports by Ray Douglas