Market reactions to Donald Trump’s softening stance on crucial issues – interest rates from the Federal Reserve and trade with China – have sent ripples across global markets, offering a temporary respite from volatility. Trump explicitly stated he has no intention of replacing Jerome Powell, the Fed chairman, who he previously criticized for restrictive monetary policy. He also hinted at potentially reducing tariffs on Chinese imports, a move likely to appease market sentiment. These unexpected gestures calmed financial markets, leading to gains across major indices including the S&P 500, Dow Jones, and Nasdaq. This turn of events contrasts sharply with Trump’s past attacks on both the Fed and China, raising questions about his long-term economic strategy.