Powell: Fed will 'act as appropriate'

Powell: Fed will 'act as appropriate'

Federal Reserve Chair Jerome Powell stressed Friday that the central bank will act to ensure the U.S. economic expansion continues, even in the face of "significant risks" posed by slowing global growth. "As usual, the Fed does nothing", he frowned on Twitter.

Trump was enraged by Powell's speech, saying he was not sure who was the bigger enemy, the U.S. central bank chief or Chinese President Xi Jinping (習近平).

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc.

Terming China's announcement Friday of additional tariffs on $75 billion worth of American products "politically motivated", Trump said he is retaliating by increasing the 25% tax, effective October 1, on $250 billion on goods of products from China to 30%. He warned of a trade war that got out of hand.

Markets have been jumpy for weeks as traders increasingly worry about a protracted trade war and whether it could tip the already fragile global economy into recession. The president stated in a subsequent Twitter put up that he would reply to China's tariffs in a while Friday.

Beyond that type of impact and the alerts about a possible slowdown, perhaps the main proof that things are not going as well as the president says is in the tweets published by him this Friday.

Dow Jones Industrials components Intel Corp and Apple Inc dropped 3.9% and 4.6%, respectively.

Trump went on to "hereby order" US companies to seek alternative markets to China, which announced a new round of tariffs against American goods earlier Friday.

"But at this point, it's very clear. that the issues that have been coming to fruition of late with the economy and the slowdown are all trade-related and have very little to do with the Fed", Katz added.

Federal Reserve Chairman Jerome Powell said Friday that the central bank "will act as appropriate to sustain" the US economic expansion.

All three major USA stock indexes turned sharply lower, setting a course for their fourth consecutive weekly declines after President Donald Trump tweeted that US companies should "immediately start looking for an alternative to China". Presidents Trump and Xi are creating a stronger case for Fed action.

Trump, before boarding the helicopter Friday night, brushed off the plunge in share prices, saying that since the time of his November 2016 election "we're up 50 percent or more". He also seemed to accuse Powell of being an "enemy" of the U.S.

But the impulsive head of the White House went further, and in another Tweet he ordered U.S. companies to leave China and start looking for alternatives to trade with that country.

Brian Rose, senior economist at UBS Global Wealth Management, said China's announcement is not surprising and is consistent with its measured approach toward retaliation against USA tariffs.

But even as his policies are being denounced as economically irrational, counter-productive and unrealistic, Trump is preparing to escalate them.

"Our economy is doing great".

All three major USA stock indexes ended the session sharply lower, posting their fourth consecutive weekly declines. "This is more important than anything else right now, just about, that we're working on".

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