Trump Backs Off Firing Powell After Walmart, Target CEOs Warn Him Of Empty Store Shelves

Warnings of empty shelves and financial chaos pushed President Donald Trump to soften his fight with the Federal Reserve and cool talk of a deeper tariff war with China, lifting Wall Street out of a tailspin late Wednesday.

What Happened: The about-face came after top retailers — Walmart, Target, Home Depot, and Lowe's — met Trump in the Oval Office and bluntly cautioned that his trade fight was tightening supply lines. According to a CNN report, one executive told him store shelves could "soon be empty," according to people familiar with the discussion. Earlier alarms from advisers and major CEOs had underscored the risk of firing Fed Chair Jerome Powell and escalating tariffs.

Hours later, Trump reversed course. "I have no intention of firing him," he said of Powell, a remark that sent the Dow (INDEXDJX: .DJI) up as much as 1,200 points before it settled 420 points higher. The S&P 500 (INDEXSP: .INX) rose 1.67 percent and the Nasdaq (INDEXNASDAQ: .IXIC) gained 2.5 percent, though all three indexes finished below intraday peaks after Treasury Secretary Scott Bessent warned that rebalancing trade could take a "2 to 3-year timeline."

See also: Tim Walz Slams Trump Over Tariffs, DOGE Department In Blistering Speech, Calls Him A ‘Man Who Wants To Be A King’

Stocks rallied again when Bessent hinted at de-escalation with Beijing, yet the administration kept its bargaining chip. White House press secretary Karoline Leavitt insisted there would be "no unilateral reduction in tariffs against China."

Trump told reporters negotiations with China and others remain "active. Everything's active." For jittery CEOs, the president's new tone offered breathing room. But until a clear trade deal lands, they warned, shelves — and markets — could still run dangerously low on comfort.

Why It Matters: China's Ministry of Commerce rejected reports that Beijing is quietly negotiating with Washington, calling talk of active trade discussions "unfounded." The denial follows U.S. Treasury Secretary Scott Bessent's remarks at a closed-door JPMorgan investor summit, where he called the current tariff levels "unsustainable" and predicted a "de-escalation" in U.S.–China duties.

The rumor mill spun faster after President Donald Trump said earlier this week that he might revisit the "high tariffs" imposed during his second term and that senior Chinese officials had reached out to explore talks. Trump has since promised a sizable cut to those duties, while insisting they will not be scrapped entirely. Beijing's swift dismissal highlights the lingering tension — and uncertainty — clouding the tariff standoff.

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