April 23rd, all three major U.S. stock indexes closed higher. The Dow Jones Industrial Average rose by 2.66% to close at 39,186.98 points, the S&P 500 Index increased by 2.51% to close at 5,287.76 points, and the Nasdaq Composite Index gained 2.71% to close at 16,300.42 points.
In particular, among the seven major U.S. tech giants, Tesla's shares surged more than 4% after CEO Elon Musk's remarks about reducing cooperation with the government. Meta, Apple, and Amazon rose over 3%, and the other four also generally increased.
Movements of the seven major U.S. tech giants iFinD from Tonghuashun
After being appointed as the head of the "Department of Government Efficiency" by Trump during his term, Musk helped the federal government save costs by reviewing expenditures and dismissing officials. However, as the tariff war escalated, their differences grew larger.
Musk said he would reduce cooperation with the government
On local time April 22nd, Tesla CEO Elon Musk stated that he would significantly reduce cooperation with the U.S. government starting in May, and the work of the Department of Government Efficiency was basically completed.
Musk said on Tuesday's conference call with analysts, "I think, starting next month, which is May, the time I allocate to the Department of Government Efficiency will be greatly reduced." He predicted that he would continue to participate in it during the "remaining term of the president," but would soon allocate more time to Tesla.
Tesla announced a net income of $409 million for the first quarter, a decrease of 71% compared to the same period last year. Analysts warned that Musk representing Trump working for the "Department of Government Efficiency" might damage his brand image.
In addition, Musk also expressed his views on tariffs. He said that Tesla has enough strength to deal with any decision made by Trump. But Musk also pointed out that when profit margins are still low, tariffs can be very difficult for businesses. Meanwhile, he emphasized, "The decision on tariffs is entirely up to the U.S. President... I will provide my own advice." Musk expressed support for reducing tariffs and will continue to advocate for tariff cuts.
"The Federal Reserve should lower interest rates and has no intention of dismissing Chairman Powell."
On local time April 22nd, Trump said that Chairman Powell of the Federal Reserve did not cut interest rates faster, which frustrated him greatly, but he had no intention of dismissing Chairman Powell of the Federal Reserve. In addition, Trump also said that he hoped Chairman Powell of the Federal Reserve would take more proactive actions on interest rates.
Christine Lagarde, President of the European Central Bank, said earlier that day that she hoped President Trump of the United States would not dismiss Chairman Powell of the Federal Reserve. When asked in an interview whether the dismissal of Powell posed a significant risk to the market, she responded, "I certainly hope this will not become a risk." She also stated that she would not comment on the potential impact of the event on the market.
Previously, Trump had repeatedly expressed his willingness to dismiss Powell in public forums, including on social media. Last Thursday, Trump posted on social media platforms, saying Powell could leave immediately and that the Federal Reserve should cut interest rates immediately. On Friday, Trump reiterated at the White House that Powell should lower interest rates.
On the 18th, the European Central Bank once again announced a rate cut. Meanwhile, Trump again blamed Chairman Powell of the Federal Reserve, stating that he moved too slowly and did not do his job well, "the sooner he leaves the better."
The day before, Trump posted again, stating that energy and food prices in the United States had fallen significantly, almost eliminating inflation, but "there is a possibility of economic slowdown in the U.S., unless Powell cuts interest rates now."
Fed Governor Kugler recently said that the increase in U.S. tariffs far exceeded previous expectations, and the Fed enjoys high trust from the public, with inflation expectations already stabilized.
Minneapolis Fed President Kashkari said on Tuesday that when asked about U.S. President Trump's criticism of Fed Chairman Powell for not cutting interest rates, he stated that the independence of the Fed's monetary policy is fundamental and key to improving economic conditions.
Kashkari also pointed out that it was still too early to judge the correct path of interest rates. He said that the recent rise in U.S. Treasury yields and the weakness of the dollar indicate that some investors are reassessing whether to invest in the U.S., adding that the reduction in capital flows may lead to rising Treasury yields.
Kashkari said when talking about the economic outlook, tariffs cause inflation to a certain extent and may also lead to a slowdown in economic growth. Logically speaking, tariffs cause a one-time price increase, but he worries that under the backdrop of already high inflation, tariffs may lead to runaway inflation expectations.
The U.S. plans to urge Britain to reduce auto tariffs from 10% to 2.5%
According to foreign media reports, sources familiar with a draft document from the Trump administration said that the U.S. is preparing terms for trade negotiations with the UK, aiming to have the UK reduce tariffs and other non-tariff barriers on various American goods. The goal is to have the UK reduce its 10% tariff on imported U.S. cars to 2.5%.
The U.S. automotive industry is currently in trouble. On local time April 22nd, six organizations representing the U.S. auto industry urged the Trump administration in a letter not to impose a 25% tariff on car parts that is scheduled to take effect on May 3rd, stating that it might endanger U.S. automobile production. The letter pointed out that many auto suppliers are already struggling and cannot afford additional cost increases, thus causing broader industry problems.
The Trump administration began imposing a 25% tariff on imported vehicles on April 3rd and plans to impose the same level of tariffs on car parts starting May 3rd.
In addition to car tariffs, the U.S. will also push the UK to relax regulations on importing beef and other agricultural products from the U.S., and modify the rules of origin for goods between the two countries. The source said that the Trump administration distributed a draft document outlining the goals of U.S.-UK trade negotiations to stakeholders this week.
The International Monetary Fund downgraded global growth forecasts
On local time April 22nd, the International Monetary Fund released the latest edition of the World Economic Outlook Report, lowering the global growth forecast for 2025 from 3.3% at the beginning of the year to 2.8%, with an expected 3% for 2026, significantly below the January prediction of 3.3% for both years. In the above reference forecasts, the IMF downgraded its forecast for U.S. economic growth this year by 0.9 percentage points to 1.8%, the largest adjustment among major developed economies; it predicts that U.S. economic growth will slow to 1.7% next year.
The report pointed out that the main reason for the global slowdown is the drastic change in U.S. tariff policies and the resulting high policy uncertainty. Since the beginning of 2025, the U.S. has announced multiple rounds of tariff measures against major trading partners and key industries, eventually implementing nearly comprehensive tariffs on April 2nd. Although some planned tariff increases have been temporarily suspended, these measures and countermeasures have pushed U.S. and global tariff levels to their highest point in nearly a century.
Georgieva, President of the International Monetary Fund (IMF), said that if the tariff issue is not resolved, there is a danger of recession. The degree of uncertainty exceeds measurable limits. If there is still (tariff-related) uncertainty in the future, it will be "self-inflicted." The U.S. sees its value within the IMF, and the Trump administration is pushing to address issues it cares about. Central banks need independence to ensure their credibility.
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