US President Donald Trump has suggested that the Federal Reserve could supported the United States in a turbulent trade battle with China.
The trade dispute between the two largest economies in the world has escalated this week by raising tariffs on both sides.
In a Twitter post, Trump said that China will take action to stimulate its economy to cope with the consequences. If the Fed will "match" with this potential Chinese stimulus, it will be "play over," he said.
"China will pump money into their system and will probably cut interest rates as always to compensate for the business they are and will lose," said Trump on Twitter
"If the Federal Reserve ever had a "match", it would be a game we would win! In any case, China wants a deal! "
US presidents historically avoided commenting on the Fed's public policy because of fear of politicizing the institution and undermining the credibility of its decisions 19659005] The US Central Bank "normalizes" monetary policy after years of maintaining ultra-low levels after the 2008 financial crisis
At the same time, China
The deal "when it is time"
The US and China have been leading a trade war since last year, putting billions of dollars of commodities to one another.
19659005] Only recently the two sides seemed close to a deal, but last week the US authorities said the Chinese had given up some of their promises.
The US raised $ 200 billion in Chinese commodities on Friday, and China responded with tariff increases This week, Mr. Trump said on Twitter that the US would enter into a deal with China "when the time comes".
"My respect and friendship with my President is unlimited, but, as I said many times before, this should be a lot for the US or it just makes no sense," Mr Trump said. 19659005] He added, "Everything will happen and much faster than people think!"