Alwaght- President Donald Trump has attacked US Federal Reserve Chair asking whether Jerome Powell was a greater “enemy” than Chinese President Xi Jinping. The furious attack came after the US central bank chief warned the trade war with China is risks to the US economy.
“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,” Trump wrote on Twitter.
“We have a very strong dollar and a very weak Fed. I will work ‘brilliantly’ with both, and the US will do great,” he added.
“My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?”
It was unclear what Trump meant when he said he would work “brilliantly” with both.
Trump has frequently blasted Powell for raising interest rates, which he says has boosted the value of the US dollar and undermined the competitiveness of US manufacturers. However, Even as trade tensions continued to heat up, Trump would make sure to refer to China’s president, Xi Jinping, as his “friend”, though, on Friday Trump unveiled a new label for his Chinese counterpart: “enemy”.
The US Federal Reserve is considered independent because its monetary policy decisions do not have to be approved by the president or anyone else in the executive or legislative branches of government and it does not receive funding appropriated by Congress.
With some signs of growing recession risks in the United States, Trump administration officials have discussed actions to prevent a downturn before the November 2020 presidential election, according to media reports.
Powell, in a speech earlier on Friday, characterized the US economy as in a “favorable place” but facing “significant” risks, especially from the harmful effects of the US trade war with China.
Trump lashed out at China on Friday, vowing a quick response to China's announcement of new tariffs and ordering US companies to leave the country.
The attack came after China announced earlier on Friday it would impose new tariffs on US soybeans, lobsters, peanut butter and other imports worth $75 billion in retaliation for Washington's latest round of punitive duties that take effect in two rounds, September 1 and December 15.
The United States will raise existing tariffs on $250 billion in Chinese imports to 30 percent from 25 percent, beginning on October 1, Trump said on Twitter Friday.
He added that the duties on another $300 billion in Chinese products, set to take effect on September 1, will be increased by 5 percent, reaching 15 percent.