/Trump slams Fed chief: Who is our biggest enemy, Jay Powell or Chairman Xi?

Trump slams Fed chief: Who is our biggest enemy, Jay Powell or Chairman Xi?

President Donald Trump on Friday savaged his hand-picked Federal Reserve chairman, slamming Jay Powell as an “enemy” who could pose a bigger risk to the U.S. than Chinese President Xi Jinping.

“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 tweeted. “We have a very strong dollar and a very weak Fed. I will work ‘brilliantly’ with both, and the U.S. will do great.”

Trump added: “My only question is, who is our biggest enemy, Jay Powell or Chairman Xi?” referring to the Chinese leader. Trump misspelled Powell’s name in an initial tweet, before correcting it.

The tweets came after Powell, whom Trump picked for the role of Federal Reserve chairman, spoke at a highly anticipated conference in Wyoming, where he pledged to help maintain a growing economy while also saying that U.S. trade policies and tariffs could be causing the economy to slow.

Trump also blasted Beijing, which had announced earlier Friday morning thatit would impose new tariffs on $75 billion in U.S. goods, escalating the trade war between the two countries and causing the stock market to drop.

“Our Country has lost, stupidly, Trillions of Dollars with China over many years. They have stolen our Intellectual Property at a rate of Hundreds of Billions of Dollars a year, & they want to continue. I won’t let that happen! We don’t need China and, frankly, would be far better off without them,” Trump said in a series of tweets.

“Our great American companies are hereby ordered to immediately start look for an alternative to China, including bringing your companies HOME and making your products in the USA,” Trump added. “I will be responding to China’s Tariffs this afternoon.”

Robert Lighthizer and Peter Navarro, two members of the president’s trade team, were seen outside the West Wing moments before Trump’s latest tweets. It was not immediately clear under what authority the president could order U.S. businesses to comply with his directive on China.

Powell, meanwhile, said Friday said that monetary policy “cannot provide a settled rulebook for international trade” — a subtle response to Trump’s repeated demands that the Federal Reserve continue cutting interest rates.

“We can, however, try to look through what may be passing events, focus on how trade developments are affecting the outlook, and adjust policy to promote our objectives,” Powell said.

Trump has repeatedly criticized Powell in recent months for not lowering rates more readily. That criticism has come as fears of a recession have grown amid an uptick in data that indicates economic growth has slowed.

The U.S. stock market fell sharply after China announced it would slap retaliatory tariffs on American soybeans, crude oil, and cars. In recent trading, the Dow Jones Industrial Average was down more than 470 points, or 1.8 percent.

The ongoing trade war between China and the U.S., the world’s two largest economies, has rocked markets across the world for the last year and a half and contributed to a global economic slowdown that some economists believe could trigger a recession.

The president in recent days has sought to calm fears about the economy, brushing off talk of a recession and defending his actions on China.

But despite his public reassurances, inside the White House there was growing acknowledgment that the U.S. needs to settle the standoff with China before it takes a bigger toll on the economy.

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