US Pres. Trump: Does not think China would retaliate, Fed’s Powell raised rates too fast
|In a response to China’s State Council Tariff Committee’s comments to retaliate the US plans for 10% tariffs on the additional $300bn in Chinese imports, the US President Donald Trump says that he doesn’t think China would retaliate for the increase in tariffs. President Trump also reiterated his view that the Fed should cut the rates.
Key quotes
- China very much wants to make a deal.
- Doesn’t think China would retaliate for increase in tariffs.
- Have a call scheduled with China’s President Xi. Will be speaking to him soon.
- Would not want to see a violent crackdown by China in Hong Kong.
- Think it would not be a bad idea for China’s Xi to meet with Hong Kong protest leaders.
- Having very goods discussions with China.
- Longer the trade war goes, stronger US gets.
- Fed’s Powell should be cutting rates because countries around world are cutting and we want to stay even.
- Fed’s Powell raised rates too fast.
- China wants to follow through very quickly on US agricultural purchases.
- Wants to see China humanely solve the problem in Hong Kong and things they could do it quickly.
- Not there yet on China but we will see what happens.
- US consumers may have to pay more to cover costs of tariffs.
- Thinks trade war with China will be fairly short.
- He understands September meeting between US and China negotiators is still on.
- Things US will make a fantastic trade deal with Britain’s Johnson.
- Trade deal with Britain is moving along rapidly.
FX implications
With the statements ranging wide from geopolitical to trades and also targets the Fed’s monetary policy, as usually, safe-havens like the Japanese Yen (JPY) and Gold wobbles. However, the underlying tone of the speech seems trade positive and can support commodity-linked currencies as well.
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