The Fed Chair Gives the President a Dose of His Own Medicine

For months, President Trump has been savaging his hand-picked Federal Reserve chairman — possibly to scapegoat Jerome Powell and his Fed colleagues for any future economic pain. Powell, in the mild-mannered way of central bankers, on Friday scapegoated Trump back.

In a closely watched speech at an economic policy gathering, Powell signaled the Fed was willing to further cut U.S. interest rates to ward off worrying signs for the U.S. economy. He also suggested there are limits to what the Fed can do when the White House’s trade policies are making businesses and markets nervous, which is a drag on economic growth. (The president’s response to Powell’s speech was … not positive. He rhetorically asked whether the Fed chair or China’s president is the “bigger enemy” of the U.S.)