President Donald Trump said Tuesday he has “no intention” of firing Federal Reserve Chair Jerome Powell, days after calling him a “major loser” and suggesting his dismissal was imminent.

“I have no intention of firing him,” Trump told reporters in the Oval Office, softening his tone after a series of sharp criticisms targeting the Fed’s reluctance to cut interest rates. “I would like to see him be a little more active in terms of lowering rates.”

The comments provided relief to jittery markets.

Wall Street responded positively, with equity futures jumping nearly 2% in after-hours trading.

The dollar also strengthened as investors welcomed signs of stability in US monetary policy leadership.

Trump’s remarks came after a turbulent holiday weekend, during which he repeatedly attacked Powell over interest rate decisions and blamed him for market instability.

The president has long argued that the Fed should lower rates more aggressively, despite inflation staying above the bank’s 2% target.

Trump also hinted that tariffs on Chinese imports—currently as high as 145%—could be reduced. “It will come down substantially. But it won’t be zero,” he said.

The Federal Reserve, tasked with controlling inflation and maintaining employment, has kept interest rates steady since Trump returned to office.

Powell has warned that the White House’s broad tariff strategy could fuel inflation while slowing growth.

Trump’s renewed confidence in Powell comes amid ongoing legal debates over the president’s authority to remove officials from independent agencies.

While Powell serves a four-year term as chair, Fed governors can only be removed “for cause.”

The Fed’s next policy meeting is scheduled in two weeks.

Markets are now pricing in three rate cuts by year-end, down from four previously expected.

The IMF this week downgraded US and global growth forecasts, citing trade tensions as a primary concern.