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WASHINGTON (Reuters) – US President Donald Trump reacted angrily to comments by Federal Reserve Chairman Jerome Powell on the trade war with China and economic risks for the United States.
According to "French", Trump asked if the person who appointed him to head the Central Bank was a more powerful "enemy" than Chinese President Xi Jinping?
Trump tweeted on Twitter: "As usual, the Fed has done nothing! … My question is who is our biggest enemy, Jay Powell or President Xi?"
Trump ordered US companies to immediately start looking for an alternative to China, consider closing their operations in Beijing and making more products in the United States.
Trump could not force American companies to abandon China and did not give details on how it would proceed, but he would respond later to the tariffs on US goods announced by China yesterday.
"Our big American companies are therefore ordered to immediately start looking for an alternative to China, including bringing home your companies and manufacturing your products in the US We do not need China and, frankly without them we would be better, "Trump wrote on Twitter. A lot
Federal Reserve Chairman Jerome Powell said yesterday that the Fed would take appropriate steps to ensure continued expansion of the US economy despite "significant risks" posed by slowing growth World.
Powell said that the US economy was "in a favorable position" and that the central bank would "act appropriately" to maintain current economic growth, comments that provided little evidence of possible lower rates of interest. Interest by the US central bank at its next meeting.
Powell, under pressure from President Trump for a rapid and rapid reduction in interest rates, has listed a series of economic and geopolitical risks overseen by the Fed, noting that many of them are related to trade wars. Trump administration with China and other countries.
"Business and manufacturing investment has declined, but strong job growth and wage increases are driving vigorous consumption and supporting moderate growth overall," he said.
If trade wars disrupt investment and business confidence and contribute to a "deterioration" in global growth, the US central bank may not be able to remedy all this with monetary policy, Powell said in a statement. a speech delivered each year at an economic forum at the Jackson Hole Mountain Resort, Wyoming.
However, he warned that "there are no specific fixed procedures for trade, there is no precedent to guide us to the correct answer to the current situation".
Several bank officials at the conference stressed their opposition to further rate cuts to stimulate the economy for a number of reasons, including the fact that this could lead to higher prices.
"In the unlikely event that there are signs of a return to high inflation, we have proven tools to deal with them," Powell said.
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