Stocks in Asia looked set for a muted Friday start after a lackluster US session that saw traders adopt a cautious stance before Federal Reserve Chair Jerome Powell's address at the Jackson Hole summit.
European shares inched higher early on Friday, with all eyes on a speech by Federal Reserve Chief Jerome Powell for confirmation the USA central bank is still on course to deliver another cut in interest rates next month.
"My only question is, who is our bigger enemy, Jay Powel or Chairman Xi?"
Trump then ordered American companies "to immediately start looking for an alternative to China" and said further actions against the world's second-largest economy would be announced later Friday.
Mr. Powell was set to deliver a speech on Friday night at the Fed's annual policy retreat in Jackson Hole, Wyoming.
By Craig TorresFederal Reserve officials viewed their interest-rate cut last month as insurance against too-low inflation and the risk of a deeper slump in business investment stemming from uncertainty over President Donald Trump's trade war.
Earlier on Friday China's commerce ministry said in a statement it would impose tariffs on about $75 billion in imports from the United States including some agricultural products, crude oil and small aircraft.
Bullard, who has long advocated for lower rates to counteract tame inflation, said he is troubled by signs of a slowdown coming from the bond market.
The chair, under near-daily pressure from Trump to cut rates as soon as possible, methodically listed a series of economic and geopolitical risks that the Fed is monitoring - many of them, Powell noted, linked to the administration's escalating trade war with China.
The backdrop of his remarks: They come as Trump has dialed up his demands for the Fed to aggressively cut rates.
That said, Fed's Harker stated in an interview on CNBC yesterday that he does not see the need for another rate cut and that the present rate should stay as it is for a while as he believes it to be around neutral.
Markets in the U.S., Asia and Europe tumbled. The White House has called on the independent central bank to lower interest rates by up to a full percentage point, an adjustment that would typically be deployed only in a severe downturn.
The stock market dropped more than 400 points after Trump's response.
Trump can not compel USA companies to abandon China and he gave no detail on how he might proceed with any such order. Trump said, misspelling the Fed chief's name in an unprecedented attack on the independent central bank.
But Powell emphasized to a room of central bankers and economists that there's "no recent precedents" for the Fed to guide how policymakers should account for such trade policy uncertainty.