AsianFin -- U.S. President Donald Trump said Tuesday he has “no intention of firing” Federal Reserve Chair Jerome Powell, marking a sharp departure from his recent public criticisms of the central bank leader.

The statement came just one day after Trump lambasted Powell as a “major loser” in a fiery Truth Social post and hinted at his removal. The reversal comes amid mounting market sensitivity to political pressure on the Federal Reserve, which has been navigating a challenging inflation landscape.

Trump, who nominated Powell as Fed chair in 2017, has had a contentious relationship with him ever since. Recently, Trump has escalated calls for lower interest rates—a move Powell has signaled he will not pursue hastily, citing economic stability and inflation control.

Markets appeared to welcome Trump’s change in tone. U.S. stock futures surged in after-hours trading Tuesday. Dow futures jumped more than 500 points, or 1.3%, while S&P 500 futures rose 1.6% and Nasdaq futures climbed 1.8%.

The rally followed an already strong day on Wall Street, buoyed by comments from Treasury Secretary Scott Bessent, who signaled that the U.S. may de-escalate its trade war with China. Speaking from the Oval Office Tuesday, Trump reinforced that sentiment, stating he had “no plans to punish China further.”

Trump’s latest shift comes just days after he said Powell’s “termination cannot come fast enough,” blaming him for being “too late and wrong” on inflation. Markets tumbled in response, as investors feared growing political interference in monetary policy.

Powell, known for his steady leadership during times of economic uncertainty, has consistently emphasized the Fed’s independence. Analysts say Tuesday’s developments could ease near-term market volatility—but caution that uncertainty remains as Trump continues to shape the 2024 campaign narrative.