It’s already a well-known fact that US and China are not in good terms. In addition to that, now we have the trade war going on between these 2 countries. Both the countries are fighting with each other over the trade tariffs of various goods imports, since previous year. It looks like Donald Trump, the president of US is now in a pinch. He has indicated the fact that the Federal Reserve is now unable to support this trade battle against China.
The tariff is increasing in both the countries. This is affecting both the countries by escalating their disputes. President Donald trump recently tweeted on this topic. He said that China will now take initiative to stimulate its own economy to deal with this fallout. If the Federal Reserve of the US did not try to make the same move of stimulating its economy to deal with the fallout, it can turn out to be more problematic. China’s strategy involves nothing but giving more money into their system and reduction of the interest rates to make up for the mess.
If the Federal Reserve somehow managed to come at par with it, it will be game over and the US will win, says the president.
Considering the past history, the US presidents had avoided passing any comments on the Federal Reserve policy publicly. This is probably to avoid the politicizing the institution and thus lessening the confidence of people in the decisions.
Yet, Donald Trump has already made comments on the Federal Reserves and pointed out to the Chairman – Jerome Powell, in order to pressurize them to opt for low interest rates.
The central bank of US is putting constant efforts to normalize the monetary policy after keeping the rates low since 2008; the year which was marked by the financial crisis.
Gilbert holds the Master’s Degree in Business Administrations. A robust understanding of the business world is the key element that made him a successful business person. He is actively involved in the business sector from over 12 years. Gilbert serves as a rich source of knowledge and energy to all other team members. He has developed a unique communication technique, which has helped him conduct many carrier guidance and entrepreneurship guidance programs globally.