The Daily Update – Trump Attacks the Fed Again / France Taxes Amazon

Over the weekend Federal Reserve Chairman Jerome Powell was again on the receiving end of Trump's tongue as he told a Conservative Political Action Conference that Powell was someone who ‘likes raising interest rates’. Trump has long believed the Fed are out of touch, even going so far as to say ‘The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch - he can’t putt!’

Although Trump did not actually mention Powell by name, he did say ‘a gentleman that likes raising interest rates in the Fed, we have a gentleman that loves quantitative tightening in the Fed, we have a gentleman that likes a very strong dollar in the Fed’ so there are no prizes for guessing who he was referring to. And in typical Trump fashion, he took all the credit for the US economy doing well ‘despite the actions of the central bank’, telling his audience the US ‘is booming like never before’ whilst others are ‘doing very poorly, and that makes it even harder for us to be successful’. He also wrote ‘We are WINNING big, the envy of the WORLD, but just think what it could be?’ on social media.

Trump also said on Friday that he had asked China to ‘immediately remove all tariffs’ on American agricultural products, in return for his decision to postpone the deadline that would dramatically raise U.S. tariffs on Chinese imports. Trump made the request "based on the fact that we are moving along nicely with trade discussions," he said. The president called in particular for Beijing to lift its levies on products such as beef and pork.

And France is planning to tax the world’s internet giants, and believes that such a tax would raise approximately EUR500m a year for the country. Bruno Le Maire, France’s finance minister said the tax is aimed at companies that earn at least EUR750mln globally and EUR25mln in France telling a newspaper, ‘A taxation system for the 21st century has to build on what has value today, and that is data’. The tax would target platform companies, those that earn a fee for connecting companies with customers, such as Amazon, plus also targeting the sales of personal data for advertising purposes.

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