President Donald Trump tore into Jerome Powell on Friday after the Fed president refused to give a clear signal that he was bowing to Trump's demand for interest rate cuts – compared to Chinese president Xi Jinping, his main economic and political rival.
& # 39; My only question is, who is our bigger enemy, Jay Powell or President Xi? & # 39; Trump asked on Twitter, minutes after the release of a Powell speech.
Trump used the title president Kim, which implies his head of the Chinese Military Commission. Xi also serves as president and head of the Chinese Communist Party.
Trump has long regarded China as the biggest threat to the US and is embroiled in a furious trade war on Friday morning to encourage China to levy rates on US $ 75 billion in US products.
Trump wrote: & # 39; As usual, the Fed did NOTHING! It's incredible that they can & # 39; speak & # 39; without knowing or asking what I am doing, what will be announced soon. We have a very strong dollar and a very weak Fed. I will & # 39; brilliant & # 39; cooperate with both, and the US will do great. & # 39;
The blistering attack came after Powell did not provide a clear indication of how he plans to act on further interest rate cuts Friday despite continued pressure from President Donald Trump.
& # 39; We will act appropriately to support the expansion, & # 39; Powell said in comments at a Fed meeting in Jackson Hole, Wyoming.
& # 39; We will act appropriately to support the expansion, & # 39; Powell said in comments at a Fed meeting in Jackson Hole, Wyoming
President Donald Trump raged again against the Federal Reserve on Thursday due to interest rates
He also noted that there is no & # 39; regular rule book & # 39; is about how to respond to the current trade war, and raises questions about what actions the Fed could take to mitigate President Trump's trade war with China.
In a probable reference to the president's attacks on him and the Fed – an agency the president said it was & # 39; as quicksand & # 39; acted, & # 39; Powell noted: & # 39; the three weeks since our meeting in July have been turbulent. & # 39;
Powell says President Donald Trump's trade wars have hampered the Fed's ability to set interest rate policies in his speech.
At a Fed policy conference in Jackson Hole, Powell pointed to the increasing evidence of a global economic slowdown and suggests that the uncertainty of Trump's trade wars contributed to this.
He said the trade war was a & # 39; complex, turbulent & # 39; situation.
He also said that he closely monitored the developments & # 39 ;.
Powell said that the outlook for the US economy remains favorable, but that these risks continue to run. Powell reiterates that the Fed "will act appropriately to support expansion."
The Fed lowered interest rates for the first time in ten years last month, and financial markets have seized the chance of further interest rate cuts this year.
Said Powell: & # 39; It is a new challenge to fit trade policy uncertainty into this framework. Establishing trade policy is a matter for Congress and Administration, not for the Fed, & # 39; according to a text from his speech.
& # 39; However, there are no recent precedents to send a policy response to the current situation. While monetary policy is a powerful tool that works to support consumer spending, business investment and public confidence, "it cannot provide a definitive manual on international trade," Powell said.
He spoke after President Trump tweeted on Friday that & # 39; the Fed can now show their stuff! & # 39; That tweet followed another series of attacks on Powell and the Fed that Trump launched the day before, albeit in more reserved terms than in the past.
Trump went on Thursday after the Federal Reserve by saying it & # 39; as quicksand & # 39; moves after having destroyed the central bank a day earlier.
The president once again brought Germany to the fore, starting with selling long-term bonds with a negative return in the midst of a global move toward safe investments in the midst of turbulent markets. Germany borrowed nearly $ 1 trillion by offering the bonds, which do not pay interest to the investors who buy them.
& # 39; Germany sells 30-year bonds with negative returns. Germany competes with the US, & tweet Trump on Thursday. & # 39; Our Federal Reserve does not allow us to do what we should do. They put us at a disadvantage compared to our competition. Strong dollar, no inflation! & # 39;
Then Trump complained: & # 39; They move like quicksand. Fight or go home! & # 39;
The president made the remark as he prepared to go to France to meet with the industrial nations of the G7, including Germany.
Trump later tweeted: & The economy is doing really well. The Federal Reserve can easily make it Record Setting! The question is asked, why do we pay much more in interest than Germany and certain other countries? Be early (for a change), not late. Let America win a lot, instead of just winning! & # 39;
He also complained about the comparison with Germany on Wednesday. He tweeted: & # 39; So Germany pays zero interest and is actually paid to borrow money, while the US, a much stronger and more important credit, pays interest. & # 39;
When he left the White House for a day out, Trump said, "We'll see what happens to the Federal Reserve, or they'll finally get smart and lower interest rates, like in many other places in the world where we have to compete with. & # 39;
Trump reported Friday that the United States is on its way to a recession, even while the White House personally warned him that an economic downturn is imminent – just in time for his re-election campaign.
The president warned the stories about the struggling economy & # 39; will not work because I always find a way to win & # 39 ;.
Trump has made a strong US economy the center of his argument to voters about why they should give him a second term in office.
Donald Trump threw reports that the United States is on its way to a recession
& # 39; The economy is strong and good, while the rest of the world is not doing so well. Nevertheless, the Fake News Media, along with their partner, the Democratic Party, work overtime to convince people that we are in a recession or are about to get into it, "he tweeted Friday morning.
& # 39; They are willing to lose their wealth, or much of it, just for the opportunity to win the election. But it won't work because I always find a way to win, especially for the people! The largest political movement in our country's history will again win a big victory in 2020!, & He added.
Relief workers told the president earlier this month that some of their internal predictions showed that the economy could slow down considerably in the coming year – not really a recession but a dip that would come if his re-election campaign kicked in, The Washington Post reported.
And Trump replied that he thinks he can convince Americans that the economy is strong – despite some figures showing.
& # 39; Our economy is incredible, & # 39; Trump told reporters in the Oval Office on Tuesday. & # 39; Our economy is doing great, & # 39; he repeated.
But assistants also described the president as obsessed media coverage of the economy because he is worried Americans will believe the news and stop publishing.
& # 39; In the past few weeks, when the market fell, there was a certain fear in the White House & # 39 ;, a White House official told The Post. "There is a feeling that we are entering 2020 that we can bounce back from almost anything if the economy remains strong."
Trump has kept Jay Powell, president of the Federal Reserve, warm to lower interest rates
The private warning of assistants comes when advisers openly insist that the economy is doing well – following the news of the president.
& # 39; We think the economy is in good shape & # 39 ;, Larry Kudlow, director of the National Economic Council, told reporters at the White House on Thursday afternoon.
& # 39; We expect nothing but a strong, solid economy, & # 39; he said. & # 39; That's my message: people work, they spend. & # 39;
And when asked if a recession was possible, Kudlow said he would be & # 39; in the near future & # 39; none see.
While unemployment remains at a 50-year low, some other economic indicators have raised concerns – business investment has stopped and US production slowed for the first time in 10 years this month, putting jobs at risk.
Trump & # 39; s latest tweets are coming as Federal Reserve Chairman Jay Powell prepares to speak at the annual Jackson Hole symposium on Friday morning – notes that Wall Street and the president will listen attentively.
Trump has used the Fed as his punching bag when it comes to the economy and has besieged the central bank and demanded that interest rates be lowered.
& # 39; Now the Fed can show their stuff!, & # 39; he tweeted ahead of Powell & # 39; s comments on Friday morning.
He kept the heat on this week.
& # 39; I would like to see a Fed rate cut, as that should have happened long ago. I think they are very slow in not doing it and have not done it before. They came up too quickly. And, you know, I've been quite vocal about that, & # 39; Trump said Tuesday.
And Team Trump continues to send a strong economic message with assistants taking up the president's call to blame Democrats and the media for a recession.
& # 39; Now they're pushing a recession lie & # 39 ;, said White House Deputy Press Secretary Hogan Gidley about Fox News Tuesday. & # 39; The fact is that so many on the left want these terrible things to be true, rather than paying more attention to the incredible nature of our economy and how far it has gone. & # 39;
Larry Kudlow, director of the National Economic Council, has spread the message that the economy & # 39; healthy & # 39; is
Trump has also spread a powerful economy message.
& # 39; I think the word & # 39; recession & # 39; is a word that is inappropriate because it is just a word that certain people – I'm going to be friendly – certain people, and the media, are trying to build because they like to see a recession. We are very far from a recession, & he said Tuesday in the Oval Office.
In a poll by The Associated Press-NORC Center for Public Affairs Research on Friday, voters gave Trump his highest rating for dealing with the economy – approving his work there over his treatment of gun policy, immigration and health care.
But even on an economic level, Trump is somewhat under water: 46 percent approve of his driving behavior and 51 percent reject it.
Kudlow said Thursday that the White House could roll out a tax reduction plan next year during the 2020 elections – a sign that the administration is looking at future economic figures.
& # 39; We look at what I call tax cuts 2.0, & # 39; he said. & # 39; It is a long-term project to help the long-term growth of the economy to provide additional tax relief to people on average incomes, workers. & # 39;
He added: & # 39; And it will probably be released during the campaign. & # 39;
Manual voters helped put Trump in the White House during the 2016 elections.
There have been other signs of a slowdown in economic growth this week.
U.S. Steel – a company whose renaissance has been an important part of the Trump story – said it would fire 200 employees. It will also keep two blast furnaces inactive at Great Lakes and Gary Works factories in Michigan for at least six months, referring to lower steel prices and softening demand.
The layoffs were characterized as temporary in filing, but the company admitted that they could last longer than six months, in another indicator that the US economy is slowing.
Michigan is crucial to Trump's re-election prospects and his victory there in 2016 helped him get into the White House.
More bad news for the president, a top financier, JP Morgan Chase, estimated that Trump's rates on China cost US consumers $ 1,000 per household.
And 74 percent of economists surveyed by the National Association for Business Economics for a report released Monday said they believe a slowing economy will end up in a recession by 2021.
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