His tactics to rectify that have included slapping billions of dollars of tariffs on Chinese imports and threatening even more extreme measures, but on Wednesday he blamed the Federal Reserve's interest rate policy for holding the USA economy back.
"Incompetence is a... bad thing to watch, especially when things could be taken care of sooo easily", Trump said in his screed. Interest rate cuts have historically been the Federal Reserve's first line of defense against a USA recession, while rate hikes are a guard against out-of-control inflation.
"We have the greatest companies.in the world, there is nobody even close, but unfortunately the same can not be said of our Federal Reserve", Trump tweeted, adding that "substantial Fed cuts" would make it possible for American companies "to win against any competition". Fed officers cited considerations a few global financial slowdown and trade tensions, and furthermore acknowledged they may perhaps discontinue reducing its balance sheet. "But it might not be convincing to the White House, which is itself divided".
"Our problem is not China", the president wrote on Wednesday, boasting that the U.S. economy is stronger than ever.
A day after the Fed shaved off a quarter-percentage point, Trump threatened to slap a 10% tariff on $300 billion in Chinese goods on September 1, later triggering a 24-hour tumult in tit-for-tat retaliatory actions between the world's two largest economies. Those complaints and threats have stoked concerns that the Fed's independence could be damaged.
Trump's unprecedented attacks on the Fed prompted former Fed chairs Paul Volcker, Alan Greenspan, Ben Bernanke and Janet Yellen to co-write an op-ed piece for the Wall Street Journal this week highlighting the importance of an independent central bank.
The Fed's remarks indicate the rate cut this time will not open the gate for continuous interest rate cuts.
See Also: What Happens When A Country Manipulates Its Currency? . Ultimately, most analysts think that the move will harm the USA economy by pushing up inflation at home as United States citizens need to pay higher prices for the foreign goods that they want. They might make a policy response.
"The effects of tariffs and the trade war generally are much broader", Reinhart says.
But taking economic growth, employment and inflation into consideration, the Fed could have waited for some time before cutting the interest rate.
"That's worrisome, because it's not clear that the Fed can offset everything that the trade war does to damage the economy and there's room for error there", he said.
Central bank chief Jerome Powell would not commit to further loosening policy, describing the last move as only a "midcycle adjustment". "China was killing us with unfair trade deals".
"This then feeds through into consumer sentiment and spending more broadly in the economy with recession risks mounting". "People will hold the dollar in a period of global uncertainty". "We're just going to be watching".
But, for now, the Fed chairman has tried to thread the needle by cautioning a wait-and-see approach as the situation evolves.