President Donald Trump is studying whether he can fire Fed Chair Jerome Powell, said National Economic Council Director Kevin Hassett

Investors are also eyeing developments at the Federal Reserve as Trump hit out at boss Jerome Powell, who warned the sweeping tariffs were "highly likely to generate at least a temporary rise in inflation".

After the Federal Reserve chair warned that Trump's tariffs could stoke inflation, Trump responded with a furious social media tirade demanding his removal.

Markets have been seized by volatility recently as US President Donald Trump embarks on his hardball trade policy that has seen him impose painful duties on imports from major partners, stoking recession fears.

The Federal Reserve kept rates steady on Wednesday, but members cut their growth target for the year

The losses come despite a second-straight record close on Wall Street and follow a recent rally as traders have rolled with the president's latest tariff salvos, betting that they are being used as negotiating tactics.

Vivek Ramaswamy blasted the Federal Reserve's mismanagement, calling it an "open secret" that investors track the Fed not for insight but to anticipate its next blunder, as he pushes his government efficiency agenda ahead of a likely run for Ohio governor.

Former Federal Reserve senior adviser John Harold Rogers was arrested for allegedly conspiring with Chinese officials to steal trade secrets and indicted on espionage charges.

Trump blamed the Federal Reserve for the "worst Inflation in the History of our Country" accusing the central bank of prioritizing DEI & climate over economics.

Data showing Japanese inflation rose more than expected last month did little to help the yen, which took a hefty hit from the US central bank's more hawkish tilt and the Bank of Japan's refusal to tighten monetary policy.

In the last couple of months, the Fed's favored inflation has ticked higher, moving away from the bank's long-term target of two percent, and raising concern that the battle against inflation is not over.

There is speculation that monetary policymakers will not make as many reductions next year as previously expected amid fears that Trump's planned tax cuts, deregulation and tariff hikes will reignite inflation.

Donald Trump is considering Kevin Warsh to become the next Treasury Secretary under his term.

Equities have seen big swings since Trump's election at the start of the month, with optimism over pledged tax cuts and deregulation offset by worries they could also reignite inflation, along with threatened import tariffs.

A warning from US central bank boss Jerome Powell that reductions in borrowing costs were not preset dented optimism last week, while traders were also keeping tabs on the president-elect's cabinet choices, with several China hawks lined up.

The uncertain performance came at the end of a painful week fuelled by worries about another disruptive China-US trade war.

Asia took up the baton in early trade but some markets fell away in the afternoon. Tokyo, Sydney, Singapore, Wellington, Taipei and Jakarta rose.

Traders had previously been confident that the US central bank would follow up last month's bumper 50-basis-point cut with another at its November meeting and a smaller one in December.

A global rally that has seen several markets hit multiple records -- particularly in New York -- appears to have run out of gas as traders assess the US central bank's plans in the wake of forecast-topping economic data and ahead of a tight presidential election.

The rate-cut lowers the cost of borrowing for consumers and businesses, bringing some relief to households weeks before November's presidential election -- even as the Fed works independently of the US administration.

Traders have been put in a bullish mood by the Federal Reserve's decision to go big on its first reduction since the start of the Covid pandemic -- opting for 50 basis points instead of 25 -- and pledging more would come.

While the US central bank is widely expected to cut borrowing costs for the first time since the start of the pandemic, the big question is whether officials will go for a bumper move before a series of smaller ones into the new year.

More data suggesting the Federal Reserve was winning the battle against inflation provided an extra kick for equities after another rollercoaster week that started with big losses fuelled by US recession worries.

The Federal Reserve is widely expected to cut interest rates at its next meeting this month but close attention is being paid to Friday's non-farm payrolls (NFP) figures, which are seen as playing a major role in how big the central bank will go.

Tokyo, Hong Kong, Sydney, Singapore, Seoul, Mumbai, Bangkok and Manila rose Thursday, though Shanghai, Wellington, Jakarta and Taipei slipped.

Most equities marched higher Wednesday after hopes for a Federal Reserve interest rate cut next month were boosted by data showing US wholesale prices rose less than forecast last month.

After a painful collapse fuelled by a big miss on US jobs creation, equities managed to bounce back over the following days and ended Friday on a healthy note.

The euro also remained under pressure ahead of weekend elections in France that polls suggest will see big wins for the far-right and left-wing parties pushing President Emmanuel Macron's centrists into third.

The May headline consumer inflation rate is expected to be little changed from a month earlier, according to the median forecast of economists surveyed by Dow Jones Newswires and The Wall Street Journal.

The recent uptick in US inflation has weakened the case for the Federal Reserve to start cutting interest rates, a senior Fed policymaker told AFP on Thursday.