Equities rallied with Wall Street on Wednesday after Donald Trump said he had "no intention" of firing the head of the Federal Reserve and that eye-watering tariffs on China would be slashed drastically.

Global markets, already upended by a trade war, were battered further at the start of the week by fears the US president was looking to remove central bank boss Jerome Powell for not cutting interest rates, calling him a "major loser" and "Mr. Too Late".

Observers warned such a move would have dealt a blow to the Fed's independence and sparked a crisis of confidence in the world's top economy, sparking a sell-off of US assets and another global crisis.

However, Trump looked to temper those fears Tuesday, saying: "I have no intention of firing him."

He added: "I would like to see him be a little more active in terms of his idea to lower interest rates -- it's a perfect time to lower interest rates.

"If he doesn't, is it the end? No."

The remarks gave a much-needed shot of relief to investors, helped by the president's comments later indicating a more conciliatory approach to the trade war with........

© International Business Times