In a
series of angry tweets earlier in the day, Mr. Trump called for American companies to cut ties with Beijing and said the United States would be economically stronger without China. Those comments sent stocks plunging, helping push the market to its fourth straight weekly loss. The president also called the Fed chair, Jerome H. Powell, an “enemy” of the United States and compared him to President Xi Jinping of China, his trade nemesis, after Mr. Powell declined to signal an imminent cut in interest rates.
Talks between China and the United States have largely stalled, with Beijing refusing to accede to the United States’ trade demands. As economic damage from the yearlong dispute mounts, Mr. Trump has taken a scattershot approach to spurring the economy: clamoring for the Fed to cut interest rates, teasing the idea of tax cuts and, on Friday, commanding American companies to do his bidding against China.
“Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing our companies HOME and making your products in the USA,” he tweeted, adding, “We don’t need China and, frankly, would be far better off without them.”
Mr. Trump has been counting on Mr. Powell to help blunt the effect of his trade war by cutting interest rates to keep the economy humming. While Mr. Powell said on Friday that the Fed could push through another cut if the economy weakened further, he suggested that the central bank’s ability to limit economic damage from the president’s trade war was constrained.
“My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?”
the president tweeted.