Trump Lashes Out After Fed Chairman Powell’s Speech; Tweets ‘Fed Did Nothing’ and Asked Who’s America’s ‘Bigger Enemy’ Powell or Xi Jinping

  • Speaking to central bankers in Jackson Hole, Wyoming, Fed Chairman Jerome Powell said “that the Fed stands ready to cut interest rates further if the economy needs it but wasn’t clear about when or by how much.”
  • President Trump, however, wasn’t happy with what Powell said and attacked him on Twitter. Trump has been highly critical of the Fed, “which he has repeatedly accused of keeping rates too high.”
  • Trump tweeted: “As usual, the Fed did NOTHING! It is incredible that they can ‘speak’ without knowing or asking what I am doing, which will be announced shortly. We have a very strong dollar and a very weak Fed. I will work “brilliantly” with both, and the U.S. will do great.”
  • Trump also compared Powell, who he handpicked to be chairman, to Chinese President Xi Jinping and wrote: “My only question is, who is our bigger enemy, Jay Powel (sic) or Chairman Xi?”
  • Trump has also been unhappy with what he sees as the “Fed keeping monetary policy too tight, which he says has boosted the value of the dollar and undercut economic growth.”
  • Powell’s speech came after China’s announcement that it will place tariffs on about $75 billion worth of U.S. products as a retaliatory move to Trump’s tariffs on Chinese imports.
  • China  also plans to “raise import taxes on U.S.-made autos and auto parts.”
  • With the ongoing trade war between the U.S. and China, Powell noted its effect in his speech, and “said Trump’s trade wars have complicated the Fed’s ability to set interest rates and have contributed to a global economic slowdown.”
  • Last month, the Fed cut rates for “the first time in a decade, and financial markets have baked in the likelihood of more rate cuts this year.”
  • There have also been growing concerns about a looming U.S. recession, which Trump’s administration has repeatedly denied.
  • Before Powell’s speech, White House trade adviser Peter Navarro “urged the Fed chief to lower rates,” and said: “America, we have your back. That’s all he has to say.”

Reference Links

  • AP: Powell says Fed will aid economy, but Trump escalates attack READ
  • CNBC: Trump tweets: ‘Who is our bigger enemy,’ Fed Chairman Powell or Chinese President Xi? READ
  • MarketWatch: Trump blasts Powell and Xi as ‘enemies’ of U.S. as Fed fight, trade war heat up READ
  • Reuters: Enraged Trump likens Fed chief to ‘enemy’ China READ

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