Tags: China | Trump Administration | jim cramer | companies | tariffs | fed | economy

Jim Cramer: Trump Tariffs Get More Blame Than Fed for Slow Economy

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By    |   Friday, 19 July 2019 02:37 PM

Investment guru Jim Cramer says U.S. companies are blaming President Donald Trump’s use of tariffs, not Federal Reserve rates, as the reason behind the slowing U.S. economy.

“Most of the companies I’ve talked to, Mr. President, are saying [the slowdown] is because of your tariffs,” Cramer said on CNBC.

“I’m not hearing people blame the Fed as much as they’re blaming tariffs,” said Cramer.

Cramer’s reaction was to Trump’s tweets Friday morning, saying the central bank should end its “crazy” tightening moves.

Even though Wall Street is considering a Fed cut to be almost certain later this month, it’s Trump’s tariffs that companies are remembering, Cramer said. “People have forgotten the December hike,” which happened when markets were melting down at the end of 2018.

The president is “going to have the rate cut,” predicted the “Mad Money” host. “Don’t rub it in Powell’s face anymore.”

For his part, Trump on Friday kept up his pressure on the Federal Reserve as the U.S. central bank’s next meeting approaches later this month, when financial markets expect an interest rate cut, Reuters reported.

Trump, in a tweet, reiterated his call for lower interest rates and slammed the Fed for what he called its “faulty thought process.” Fed Chairman Jerome Powell has repeatedly said the Fed makes decisions independently from markets and the White House.

Meanwhile, U.S. and Chinese officials spoke by telephone on Thursday as the world’s two largest economies seek to end a year-long trade war, with U.S. Treasury Secretary Steven Mnuchin suggesting in-person talks could follow, Reuters explained.

Mnuchin and U.S. Trade Representative Robert Lighthizer spoke with their Chinese counterparts over the phone, Lighthizer’s office said on Thursday, following earlier comments by the Treasury secretary in an interview on the sidelines of the G7 meeting in Chantilly, France.

The United States and China have been embroiled in a tit-for-tat tariff battle since July 2018, as Washington presses Beijing to address what it sees as decades of unfair and illegal trading practices.

China has countered that any deal needs to be fair and equitable, leaving the two sides apparently still far from an agreement to end the back-and-forth that has roiled global supply chains and upended financial markets.

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Investment guru Jim Cramer says U.S. companies are blaming President Donald Trump’s use of tariffs, not Federal Reserve rates, as the reason behind the slowing U.S. economy.
jim cramer, companies, tariffs, fed, economy
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2019-37-19
Friday, 19 July 2019 02:37 PM
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