Trump has pinned blame on Fed Chairman Jerome Powell while heralding what he says is a booming economy.<\/p>\n<\/blockquote>\n
Chinas state-run news agency Xinhua quoted the countrys tariff commission Friday, which said the penalties were in response to levies threatened by the U.S. on $300 billion worth of Chinese goods.<\/p>\n
\u201cThe U.S. measures have led to the continuous escalation of China-U.S. economic and trade frictions, which have greatly harmed the interests of China, the U.S. and other countries, and have also seriously threatened the multilateral trading system and the principle of free trade,\u201d Beijing said.<\/p>\n
The announcement from China was shortly followed by a speech from Federal Reserve Chairman Jerome Powell in which he said the central bank stands ready to do what is necessary to support the record-long U.S. economic expansion. But he did not signal that significant interest rate cuts will be coming soon, angering Trump.<\/p>\n
\u201cAs 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. I will work brilliantly with both, and the U.S. will do great,\u201d Trump tweeted.<\/p>\n
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White House trade adviser Peter Navarro said Chinas announcement of a fresh round of tariffs on $75 billion in U.S. goods was \u201cwell anticipated\u201d | Chip Somodevilla\/Getty Images<\/p>\n
He then launched a personal attack on Powell, writing, \u201cMy only question is, who is our bigger enemy, Jay Powell or Chairman Xi?\u201d<\/p>\n
Earlier on Friday, White House trade adviser Peter Navarro, who provides a strong protectionist voice on U.S. trade talks within the Trump administration, denied that Chinas announcement caught the White House off guard and downplayed the impact of the move.<\/p>\n
\u201cThis was a move that was well-signaled,\u201d he told CNNs Jim Sciutto in an interview. \u201cIts breaking news I guess, but it was well anticipated.\u201d<\/p>\n
Though he conceded the economy was slowing, Navarro blamed the Fed for slow-walking interest rate cuts, calling economic worries \u201ca pure Federal Reserve effect on higher interest rates.\u201d<\/p>\n
Navarro was pressed on some business leaders admissions that the uncertainty because of the trade war was dampening investment, but he again blamed monetary policy emanating from the Fed.<\/p>\n
\u201cThey cant make investments because the Fed raised interest rates too far, too fast \u2014 that policy \u2014 Fed policy is if you raise interest rates, you cut down investment and you cut down exports,\u201d he argued.<\/p>\n
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