Fed pushes Fed Powell and asks if he is a "bigger enemy" than China



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President Donald Trump excoriated Friday the US Federal Reserve and the man he had chosen to lead the institution, repeatedly reluctantly criticizing whether the Fed was a "bigger enemy" than China.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "After the statement of the head of the Fed at a conference held at Jackson Hole the central bank was & nbsp;ready to support the US economy with further rate reductions, Data-reactid = "16"> After Fed chief Jerome Powell said at a conference in Jackson Hole that the central bank was ready to support the US economy with further declines of rate, Trump raised the bar with more broad sides against the policy of the Fed.

In a series of publications on Twitter, the president criticized the central bank while demanding that US companies seek an alternative to China, the trade dispute between the two countries worsening. Beijing on Friday announced a new set of $ 75 billion retaliatory tariffs, which will be taxed in two separate installments on Sept. 1 and Dec. 15.

Trump's tone was even harder than usual, asking if Powell was worse for the economy than Chinese President Xi Jinping, with whom he was fighting for bilateral trade.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Trump tweets have been sent & nbsp;the main market benchmarks,& nbsp; while investors anticipated a worsening of the crisis between the two largest economies in the world. The S & P 500 (^ GSPC) Dow (DJI) and Nasdaq (^ IXICTrump's data shook the benchmark market indices as investors anticipated a worsening of the crisis between the world's two largest economies. The S & P 500 (^ GSPC) Dow (^ DJI) and Nasdaq (^ IXIC) all fell by more than 1% as a result of the president's tirade.

China is an integral part of the global supply chain and a vast market for most US multinationals. Many economists say that it is much easier to say than to change production and find alternative markets.

Even before the central bank lowered its rates for the first time since the 2008 crisis, the president had blamed the Fed for not doing enough to prevent the economy from falling into recession.

In recent weeks, he has begun to complain about the relative strength of the dollar – which has surged amidst safe haven flows during the US-China trade war.

At the same time, comments from members of the Fed's Open Market Committee (FOMC) and other policymakers point to the lack of consensus on the rigor, if any, with which the central bank should lower its rate.

"As stated in the July FOMC meeting minutes, the country's central bankers were split on the question of exactly how to deal with the quarter-point rate cut," he said. said Mark Hamrick, an economic analyst at Bankrate.com.

"Powell pointed out in his speech that there is no cookbook in this book, pointing out that there is" no recent precedent for directing a policy response to the current situation ". And that does not mean anything about the president's actions that included imposing tariffs and a nearly daily barrage of verbal criticism of Powell, "added Hamrick.

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