The U.S. dollar rose sharply and then steadied on Wednesday as President Donald Trump backed away from threats of firing Federal Reserve Chair Jerome Powell in a relief to investors, while optimism around trade deals lifted beaten-down sentiment.

US stocks ended the day sharply lower Monday and the dollar tumbled as investors assessed continued tariff uncertainty and the implications of President Donald Trump’s ongoing mission to try and oust Federal Reserve Chair Jerome Powell.

Donald Trump has Federal Reserve Chair Jerome Powell in his sights… and that has markets rattled again. Late last week, White House economic adviser Kevin Hassett said that the U.S. president and his team continued to assess if they could oust the central bank boss.