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President Donald Trump predicted on Tuesday that China's next decision in the trade war will be a reduction in rates, and he pushed the Federal Reserve to do the same, which he said would lead to a clear victory for the US. United States.
In a tweet that equates to the latest salvo in the tariff dispute between the two countries, the president has stepped up his pressure on the Fed to ease its monetary policy.
He said that if the central bank encountered a rate cut in China with one of his own, it would be "game over, we win!"
The White House and Beijing are at a standstill in their ongoing trade negotiations. Washington is seeking to lower the barriers in China and stop the country from stealing intellectual property. While recent talks stalled, China announced Monday it would impose a series of tariffs on $ 60 billion worth of US goods.
Trump's remarks Tuesday are amidst market volatility caused by uncertainty over the direction of negotiations and the length of these negotiations before a solution is found.
In previous tweets, Trump had insisted that he would only accept "a lot" for the United States.
In addition to the heat he exerted on China, Trump strongly relied on the fact that the Fed is reducing its key rate. The central bank has raised its rates four times in 2018, but markets now provide for a rate cut in October.
Minneapolis Fed President Neel Kashkari told CNBC on Monday that he thought monetary policy was right for the moment.
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