US President Donald Trump after the speech of the head of the Federal Reserve System (Fed) Jerome Powell in a series of tweets called him and Chinese President XI Jinping the main enemies of the States and then urged American business not to deal with China. Markets reacted with a fall: the S&P 500 and Dow Jones fell 1.8 percent, while the NASDAQ lost 2.2 percent.
From Paella at a conference in Jackson Hole was waiting for the announcement of a further reduction in interest rates, but the head of the fed did not mention it. Trump, who insists on a sharp decline, said the fed is doing nothing.
The head of the White House reiterated the main provisions of his anti-Chinese rhetoric. “Our country has been foolishly losing trillions of dollars to China for years. They’re stealing our intellectual property at the rate of billions of dollars a year and they’re going to keep going. I won’t let that happen!” he wrote.
….My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?
— Donald J. Trump (@realDonaldTrump) 23 августа 2019 г.
According to trump, all US companies should immediately look for an alternative to China. He also promised during the day to respond to China’s introduction of tariffs against us imports of $ 75 billion but did not specify how. Then he promised that he would order all logistics companies to refuse to China and any other countries in the delivery of fentanyl (opioid analgesic), which “kills 100 thousand Americans a year.” Earlier, Trump has already criticized China for the supply of these opioids, and on August 22, sanctions were imposed on two companies and three individuals from China for participating in the turnover of fentanyl.
The trade confrontation between the two largest economies of the planet started in 2018. The promise to achieve fair trade with China was one of the main ones during Trump’s election campaign. On the eve of August 22, before the speech of Powell, US President on Twitter again tried to put pressure on the Federal Reserve System to reduce the rate.