On Friday morning, Trump for a second day also criticized the Federal Reserve, breaking with a long-standing tradition at the White House of avoiding any influence, real or perceived, on the independence of the US central bank.
The CNBC report noted that while China can not match United States tariffs because of the trade imbalance, it had other options too: "China holds $1 trillion worth of U.S. treasury bonds". Trump is certainly allowed to say what he wants about The Fed, and he wouldn't be the first president to try something, and like everything else, the Fed is now a partisan topic.
President Donald Trump has indicated that he's willing to hit every product imported from China with tariffs and again criticized the Federal Reserve, as well as some of the nation's biggest trading partners.
"I'm ready to go 500", the Republican leader told CNBC, referring to the $505.5 billion in Chinese imports into the United States in 2017.
"We've been ripped off by China for a long time", he added. After keeping rates at near zero for years, the Fed has hiked its benchmark interest rate seven times since 2015, and more are planned because the USA economy is heating up. But he also told CNBC during the campaign that he is a "low interest-rate-person". But at the same time I'm letting them do what they feel is best, ' Trump said. "As he said he considers the Federal Reserve Board Chair Jerome Powell a very good man and that he is not interfering with Fed policy decisions".
Last month, the Fed raised its benchmark rate for a second time this year and projected two more increases in 2018.
Lawmakers critical of Trump's remarks at news conference with Putin
He is wholly in the pocket of Putin. "This is shameful", said Senator Jeff Flake , a fellow Republican and staunch critic of the president.
"We have a long tradition here of conducting policy in a particular way, and that way is independent of all political concerns", he said.
The Fed has hiked interest rates twice this year and could jack the rate up twice more before year's end.
"I'm not thrilled", Trump said in his interview with CNBC.
Trump also acknowledged that his comments are unusual but said he doesn't care.
"I'm completely confident that the Federal Reserve under Jay's leadership will continue to do what is necessary to achieve its legislated objectives, just as Alan Greenspan did when the Bush 41 administration was so publicly unhappy with the Fed's actions", said Kohn, a 40-year veteran of the Fed who served under Greenspan.
Instead, many analysts say they expect the Trump administration to impose more tariffs on China and potentially other key us trading partners. "No president should interfere with the workings of the Fed", Fisher said. Powell has said the economy is strong enough for the Fed to keep raising rates gradually. "We are being taking advantage of and I don't like it", he said.
Trump's dismissal of economic-policy tenets shifts attention during a week when he's facing growing pressure over his relationship with Russian President Vladimir Putin and his lukewarm support for the finding by USA intelligence agencies that Russia meddled in the 2016 election.