US President Donald Trump has successfully predicted that China's next move in the trade war will be a cut in interest rates. Once this happened, his rhetoric once again turned to the Federal Reserve. The US President's direct statement to the Fed is now to follow the example of China, and according to Trump, the United States will win the war.
Again in his next Twitter campaign, he intensified the tensions with the feds with China's actions, comparing the moves of the Chinese Central Bank and the Federal Reserve. Trump in a straight text tells Powell to cut interest rates.
Washington and Beijing have reached a deadlock in the talks. Americans are looking for a way to persuade the Chinese side to open up to foreign markets and to implement intellectual property reforms. After the negotiations reached this position, the Chinese responded to the new US tariffs.
Trump softened the tone and re-triggered his "encouraging" rhetoric amid a sell-out of stock markets. Trump tweet that his relationship with Xi is "wonderful" and that both sides will continue to seek a successful resolution of the conflict.
Source: CNBC
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