August 25. On Friday morning China announced some tariffs on U.S. goods in response to Trump’s tariffs. The stock market shrugged it off when it opened. Then the head of the Federal Reserve, Jay Powell, said the Fed had limited ability to help moderate trade wars. The markets barely reacted.
Then “the Chosen One” started a series of tweets against the Federal Reserve and the man he himself picked to head it and China. Sample: ….My only question is, who is our bigger enemy, Jay Powell or Chairman Xi? Another: Our country has lost trillions of dollars to China. Another: Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing.. ….your companies HOME and making your products in the USA
Yeah, we “lost” trillions to China. We received goods and China received paper money. They ripped us off indeed. Bring jobs home? Trump’s tariff’s have reduced imports from China, BUT instead we’re getting higher priced imports from Vietnam.
Trump then said he was raising various tariffs on Chinese made goods.
Responding to all this “wisdom” stocks started diving. At the end of the day the DOW was down over 600 points and the more important S&P 500 dropped a whopping 2.6%.
Remember these stock brokers and hedge fund managers worship Trump, but they’re not going to let his BS stand in their way of making or keeping their dough.