US President Donald Trump has said that he has no intention of firing Federal Reserve Chairman Jerome Powell, though he renewed pressure on him to lower interest rates.

"I have no intention of firing him," Trump told reporters at the Oval Office on Tuesday. "I would like to see him be a little more active in terms of his idea to lower interest rates."

Calling it a "perfect time" to cut rates, Trump said that such a move would not be critical but would help the economy.

"If he doesn't, is it the end? No, it's not. But it would be good timing," he said.

Trump pointed to a recent drop in prices, particularly in energy and grocery items, as justification for a rate cut.

"The only thing that hasn't come down — but hasn't gone up much — is interest rates, and we think the Fed should lower the rate," he said. "We would like to see our chairman be early or on time, as opposed to late."

Trade war with China

On trade tensions with China, Trump said the current 145 percent tariff rate on Chinese goods will be reduced "substantially," but "it won't be zero."

"I'm going to play hardball with China," he said. "We're going to be very nice, they're going to be very nice, and we'll see what happens."

"Ultimately, they have to make a deal, because otherwise they're not going to be able to deal in the United States. So, we want them involved, but they have to, and other countries have to make a deal, and if they don't make a deal, we'll set the deal," he added.