Fed’s Powell vows to act to sustain US expansion, Trump lashes out

Federal Reserve Chair Jerome Powell vowed Friday to act to ensure that the US economic expansion continues, but admitted the central bank had limited tools to respond to an intensifying trade war.

Powell’s speech in Wyoming -- in which he said trade tensions was exacerbating the global slowdown -- came on the heels of China’s decision to impose $75 billion in new tariffs on US soybeans, lobsters, peanut butter and other imports.

US President Donald Trump lost no time in criticizing Powell -- and swiping at Beijing.

In a furious flurry of tweets, Trump attacked the Fed’s stewardship of the world’s biggest economy and vowed a quick response to China.

“As usual, the Fed did NOTHING! It is incredible that they can ‘speak’ without knowing or asking what I am doing, which will be announced shortly. We have a very strong dollar and a very weak Fed,” Trump tweeted after Powell’s comments.

“My only question is, who is our bigger enemy, Jay Powel or Chairman Xi?” Trump said, misspelling the Fed chief’s name.

The Fed cut the benchmark interest rate last month for the first time in more than a decade, partly due to the anticipated impact of trade uncertainties on the growth.

But in his hotly anticipated speech to an annual central banking conference in Jackson Hole, Powell cautioned that the Fed has no “rulebook” for dealing with the impact generated by trade uncertainties.