Asian shares are mostly higher after Trump says he discussed firing Fed
Chair Powell
[July 17, 2025] By
ELAINE KURTENBACH
BANGKOK (AP) — World shares were mostly higher Thursday while U.S.
futures were mixed after President Donald Trump rocked Wall Street by
saying he had “talked about the concept of firing” the head of the
Federal Reserve, but was unlikely to do so.
Removing Fed Chair Jerome Powell might help Wall Street get the lower
interest rates investors love but would also risk a weakened Fed unable
to make the unpopular moves needed to keep inflation under control.
In early European trading, Germany's DAX gained 0.8% to 24,209.08, while
the CAC 40 in Paris also rose 0.8%, to 7,785.91. Britain's FTSE 100
added 0.4% to 8,960.99.
The future for the S&P 500 edged 0.1% higher, while that for the Dow
Jones Industrial Average lost 0.1%.
Asian markets also were mostly higher.
Tokyo's Nikkei 225 index gained 0.6% to 39,901.19 after the government
reported a trade deficit for the first half of the year as Japan's
exports to the United States took a hit from Trump’s tariffs.
The Hang Seng in Hong Kong shed early gains to close down 0.1% at
24,498.95, while the Shanghai Composite index gained 0.4% to 3,516.83.
Australia's S&P/ASX 200 advanced 0.9% to 8,639.00.
In South Korea, the Kospi climbed 0.2% to 3,192.29.
India's Sensex lost 0.3% while the SET in Bangkok jumped 3.3% on strong
gains for market heavyweights like Airports of Thailand and Delta
Electronics.
On Wednesday, the S&P 500 rose 0.3% and the Dow industrials added 0.5%.
The Nasdaq composite gained 0.3% to a fresh record of 20,730.49.
Stocks were rising modestly in the morning before news reports saying
that Trump was likely to fire Fed Chair Jerome Powell quickly sent the
S&P 500 down by 0.7%.
When later asked directly if he was planning to fire Powell, Trump said,
“I don’t rule out anything, but I think it’s highly unlikely.” That
helped calm the market, and stocks erased their losses, though Trump
added that he could still fire Powell if “he has to leave for fraud.”
Trump has been criticizing a $2.5 billion renovation project of the
Fed’s headquarters.
[to top of second column] |
Ed Curran works on the floor at the New York Stock Exchange in New
York, Wednesday, July 16, 2025. (AP Photo/Seth Wenig)
 Trump is unhappy that the Fed has
not cut interest rates this year, a move that would have made it
easier for U.S. households and businesses to get loans to buy
houses, build factories and otherwise boost the economy. Lower
interest rates could also help the U.S. government, which is set to
borrow and add a lot more to its debt after approving a wide range
of tax cuts.
Powell has insisted he wants to wait for more data
about how Trump’s stiff proposed tariffs will affect the economy and
inflation before the Fed makes its next move.
The Fed has two main jobs: keeping the job market strong while
keeping inflation under control. Lowering interest rates would help
boost the economy but would also give inflation more fuel when
tariffs may be set to push prices for U.S. households higher.
A report on Wednesday said inflation at the wholesale level slowed
to 2.3% last month, which was better than economists expected. It’s
an encouraging signal, but it came a day after another report
suggested that Trump’s tariffs are pushing up the prices U.S.
shoppers are paying for toys, apparel and other imported products.
Trump’s tariffs are making their weight felt across financial
markets. Netherlands-based ASML, the world’s leading supplier of
chipmaking gear, has warned that it can’t guarantee growth next
year, after delivering an expected 15% growth in sales for 2025.
ASML shares that trade in the United States fell 8.3%.
In other dealings early Thursday, U.S. benchmark crude oil gained 13
cents to $66.51 per barrel. Brent crude, the international standard,
gave up 10 cents to $68.40 per barrel.
The U.S. dollar rose to 148.59 Japanese yen from 147.89 yen. The
euro slipped to $1.1601 from $1.1641.
All contents © copyright 2025 Associated Press. All rights reserved
 |
