President Donald Trump said Wednesday it was the Federal Reserve and not the China trade conflict that is “our problem,” as stock markets plunged across the board.
‘VERY LATE’ FED
From his vacation in New Jersey, Trump took to Twitter to blast the Fed as the Dow Jones Industrial Average
plummeted 800 points — its worst decline of the year.
The president quoted comments about both the Fed and tariffs made on a Fox Business Network program, and added, “The Federal Reserve acted far too quickly, and now is very, very late. Too bad, so much to gain on the upside!” He also called Fed Chairman Jerome Powell “clueless,” his latest slap at the central-bank chief.
Trump regularly bashes the Fed over monetary policy, and has called its quarter-point interest-rate cut at its July meeting inadequate. He also frequently promotes his tariffs on China and other nations. But Wednesday’s tweets coincided with a plunge in the Dow and other indexes
as well as the inversion of the yield curve. Trump called the inverted yield curve — a recession warning signal — “crazy.”
Read: 5 things investors need to know about an inverted yield curve
Now see: Fed policy is White House’s ‘biggest problem,’ says Trump trade chief Peter Navarro
On Tuesday, the Dow closed more than 370 points higher amid investor relief that Trump was delaying some China tariffs. Wednesday, the president was back to defending the levies, saying, “we are taking in $Billions!” He asserted China is “not our problem,” but said the situation in Hong Kong “is not helping.” Clashes between police and antigovernment protesters have continued there for 10 weeks.
Now read: How Hong Kong clashes could wallop the U.S. stock market.
Tuesday, Trump said he was delaying tariffs on cell phones, laptops and other consumer goods from China to Dec. 15 from Sept. 1. After previously saying it was China that pays the tariffs, Trump said the delay was to ensure Americans’ Christmas shopping wouldn’t be negatively affected.
Also see: Wilbur Ross gets slammed for backing Trump’s stance on delaying tariffs
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