Powell: Fed will boost economy
WASHINGTON (AP) — Federal Reserve Chairman Jerome Powell signaled Friday that the Fed stands ready to cut interest rates further if the economy needs it but wasn’t clear about when or by how much.
Powell had barely finished speaking to central bankers in Jackson Hole, Wyoming, before President Donald Trump escalated his attacks on the Fed, which he has repeatedly accused of keeping rates too high.
“As usual, the Fed did NOTHING!” Trump tweeted. “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 Powel (sic) or Chairman Xi?,” the president added, referring to China’s leader.
On a day of fast-moving events in the financial world, Powell’s speech followed China’s announcement earlier Friday that it will impose new tariffs on $75 billion of U.S. products in retaliation for Trump’s latest planned tariff increases. China will also raise import taxes on U.S.-made autos and auto parts. Beijing’s actions deepened a trade conflict that threatens to tip a weakening global economy into recession.