Trump’s hand picked Federal Reserve Chair Jay Powell spoke at the Federal Reserve Bank of Kansas City’s annual symposium where he suggested, “the central bank is limited in its ability to counteract President Trump’s trade policies, which are stoking uncertainty and posing risks to the economic outlook.”
Powell hinted that the Feds might cut in rates in the future to help the economy grow but the US needs to take a hard look at its trade policies, which are crippling the economy.
Trump didn’t like Powell’s comments and took to Twitter to voice his displeasure. He even called Powell an “enemy” who could pose a bigger risk to the US than Chinese Pres Xi Jimping.
Trump also tweeted that he would ‘order’ “our great American companies” to “immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.”
It’s not clear how Trump plans to accomplish this or even if he has the authority to impose such an order.
Following his tweet storm, the DOW fell 435 points or 1.6 percent, while the S&P 500 slid 1.7% and the Nasdaq Composite dove 2%.