President Trump has been very vocal about his desire for Fed Chairman Powell to drop interest rates. Earlier this week, Trump accused Powell of having a “horrendous lack of vision” over his handling of the economy, as he called for the central bank to cut its benchmark interest rate to strengthen the economy.
On Monday, the Washington Examiner reported about Trump’s attack on Powell, his hand-picked choice to succeed Janet Yellen. Trump’s attacks came in a pair of tweets in which the president also cheered the strength of the U.S. economy but accused Democrats of trying to sabotage his reelection chances.
“Our Economy is very strong, despite the horrendous lack of vision by Jay Powell and the Fed, but the Democrats are trying to ‘will’ the Economy to be bad for purposes of the 2020 Election. Very Selfish! Our dollar is so strong that it is sadly hurting other parts of the world,” Trump tweeted.
Earlier today, The Hill reported about Fed Reserve Chairman Jerome Powell’s interest rate announcement. Powell announced that the central bank could soon cut interest rates amid rising fears of a recession, but warned that cheaper money would not protect the U.S. economy from President Trump’s trade battles.
In a Friday speech, Powell said the bank would “act as appropriate” to sustain a record stretch of economic growth now threatened by counter global headwinds. The chairman expressed confidence in the strength of the U.S. labor market and consumer spending, even as signals of an impending recession flash across the globe.
But Powell also warned that while the Fed could account for fallout from costly trade tensions, the bank cannot solve the uncertainty and anxiety triggered by the Trump’s trade conflicts.
“Setting trade policy is the business of Congress and the Administration, not that of the Fed,” Powell said at the Fed’s annual summit in Jackson Hole, Wyo.
“While monetary policy is a powerful tool that works to support consumer spending, business investment and public confidence, it cannot provide a settled rulebook for international trade.”
President Trump immediately took to Twitter to respond to Powell’s statement, slamming Powell for doing, “NOTHING!” Trump continued with his rant, claiming that even though the dollar is strong, the fed is “weak.” He also promised to continue to work with the Fed, saying the “U.S. will do great…”
Trump ended his rant by asking who is a bigger enemy to the U.S. economy, “Jay Powell” or Communist China’s “Chairman Xi?”
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…
….My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?
Trump slammed previous administrations for “stupidly” allowing China to steal “Trillions of Dollars” over “many years.” He also accused China of stealing our intellectual property at a rate of “Hundreds of Billions of Dollars a year,” saying they “want to continue,” but he will not “let that happen!” Trump ended his tweet by saying, “We don’t need China and, frankly, would be far better off without them.” Trump continued by bashing China for making “vast amounts of money,” by stealing from the “United States, year after year, for decades, will and must STOP.”
Trump ordered American companies to “immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.” Trump promised to respond to China’s tariffs this afternoon, calling his trade war with China, “a GREAT opportunity for the United States.
Trump doubled down on his fury with China, saying he will order “all carriers, including Fed Ex, Amazon, UPS, and the Post Office, to SEARCH FOR & REFUSE,….all deliveries of Fentanyl from China (or anywhere else!).
President Trump reminded everyone of the dangers Fentanyl poses to Americans, blaming President Xi, who said he would stop it, “but he didn’t.” “Fentanyl kills 100,000 Americans a year. President Xi said this would stop – it didn’t.
He ended his tweet by boasting about the size of our economy vs. China’s.
Our Economy, because of our gains in the last 2 1/2 years, is MUCH larger than that of China. We will keep it that way!