Trump addresses stock market losses, China trade deficit
The president spoke with reporters aboard Air Force One on Sunday.
The fallout continues after President Donald Trump's unveiling of severe tariffs against virtually all U.S. trading partners.
On Sunday, ABC's "This Week" anchor George Stephanopoulos pressed White House National Economic Council Director Kevin Hassett about Trump reposting a video that said he was tanking the markets to force the Fed to lower interest rates. Hassett said Trump was entitled to his opinion, but denied that his tariff policy was intended to put pressure on the Fed to lower rates.
Trading on Thursday and Friday marked the worst days for U.S. stocks since 2020.
Key Headlines
- Economic adviser denies Trump’s tanking markets to force rate cuts
- House Republican also planning bill to rein in Trump’s tariff authority
- Trump delivers message to Americans as tariffs take effect: 'HANG TOUGH'
- Universal 10% tariffs in effect as Wall Street continues reeling
- Trump says businesses aren’t worried about tariffs
Powell warns tariffs will increase inflation, slow economic growth
Fed Chair Jerome Powell talked about the current economic outlook at the Society for Advancing Business Editing and Writing Annual Conference Friday and gave his insight on the tariff situation.
Powell said that tariffs will likely raise inflation and slow down growth in the coming quarters.
"The size and duration of these effects remain uncertain. While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent," he said.
Powell added the U.S. is "well positioned to wait for greater clarity before considering any adjustments to our policy stance. It is too soon to say what will be the appropriate path for monetary policy."
Trump talks with Vietnamese president on tariffs
President Donald Trump said in a Truth Social post Friday that he had a "productive call" with Vietnamese President To Lam.
Trump claimed the Vietnamese leader "wants to cut their Tariffs down to ZERO if they are able to make an agreement with the U.S."
The call comes after Trump announced a 46% tariff on Vietnamese imports during his reciprocal tariff events on Wednesday.
-ABC News' Michelle Stoddart
Trump says China 'played it wrong' in apparent response to Beijing's retaliatory tariffs
President Donald Trump appears to be responding to China's announcement of a retaliatory tariff against all U.S. goods.
"CHINA PLAYED IT WRONG, THEY PANICKED - THE ONE THING THEY CANNOT AFFORD TO DO!" Trump posted on his social media platform on Friday.
The president has no public events on his schedule, but has been posting on his social media site frequently as backlash to his tariff plan continues.
Stock market drops further in early Friday trading
The stock market fell further on Friday, with major indexes down at opening.
The Dow Jones Industrial Average plummeted 925 points, or 2.25%, while the S&P 500 dropped 2.4%. The tech-heavy Nasdaq declined 3%.
The slumps come after China announced retaliatory tariffs against the U.S. overnight.