CORRECTS - UPDATE - Trump says he has 'no intention' of firing Fed Chair Powell but urges rate cut

CORRECTS TRUMP QUOTE ON CHINA

By Rabia Iclal Turan

WASHINGTON (AA) - US President Donald Trump said Tuesday that he has no intention of firing Federal Reserve Chairman Jerome Powell, though he renewed pressure on him to lower interest rates.

“I have no intention of firing him,” Trump told reporters at the Oval Office. “I would like to see him be a little more active in terms of his idea to lower interest rates.”

Calling it a “perfect time” to cut rates, Trump said that such a move would not be critical but would help the economy.

“If he doesn’t, is it the end? No, it’s not. But it would be good timing,” he said.

Trump pointed to a recent drop in prices, particularly in energy and grocery items, as justification for a rate cut.

“The only thing that hasn’t come down – but hasn’t gone up much – is interest rates, and we think the Fed should lower the rate,” he said. “We would like to see our chairman be early or on time, as opposed to late.”

On trade tensions with China, Trump appeared to have changed his stance drastically, saying the current 145% tariff rate on Chinese goods will be reduced “substantially,” but "it won't be zero."

“I’m not gonna say ‘Oh, I’m gonna play hardball with China, I’m gonna play hardball with you President Xi (Jinping). No, no. We’re going to be very nice, they’re gonna be very nice, and we’ll see what happens. But ultimately, they have to make a deal because otherwise they're not going to be able to deal in the United States.

“So we want them involved, but they have to, and other countries have to make a deal, and if they don't make a deal, we'll set the deal," he added.