World Economic Leaders Condemn President Trump's Twitter Trade Rants at G-20 Summit

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President Trump speaking East Room of the White House in Washington, D.C. on Thursday, July 19, 2018. President Trump speaking East Room of the White House in Washington, D.C. on Thursday, July 19, 2018. Cheriss May/NurPhoto via Getty ImagesOfficials from Germany to Japan and South Africa rejected Trump's stance(Bloomberg) — Global economic leaders are pushing back against U.S. President Donald Trump's latest rants on global trade and currencies, speaking out against higher tariffs while backing central bank independence. Trade WarTrump on Friday threatened to deepen the trade war with China by slapping tariffs on just about all of its exports to America, while blasting currency policies in China and Europe and criticizing monetary policy at home. Indeed, allowing the Fed to pursue its own monetary policy is essential, said Christine Lagarde, head of the International Monetary Fund.

Europe Sees Trade Tensions With U.S. Eating Into Economic Growth

"An unfavorable external environment, such as growing trade tensions with the U.S., can dampen confidence and take a toll on economic expansion," said Valdis Dombrovskis, vice president for the euro at the European Commission, the EU's executive. Still, the ECB has put off interest-rate increases until after summer 2019 on the back of rising trade tensions and weak underlying inflation. Economic confidence didn't bounce back after eurozone growth slowed in the first three months of the year, which could be linked to trade tensions, Mr. Moscovici said. Mr. Trump unveiled this week additional tariffs on $200 billion of Chinese imports after an initial round of duties on $34 billion of goods from China. "A further escalation of protectionist measures is a clear downside risk," Mr. Moscovici said.

Fed Plays Down Trade Woes and Suggests Rosy Economic Outlook

As it stated in The Fed attributes a decline in work force participation among less-educated Americans in part to technological advancements that have automated jobs. "Caregiving responsibilities play an important role" in explaining why prime-age women participate less in the work force than men, the report says. "This decision may reflect a lack of affordable child care."The report notes that rising oil prices have cost American families, on average, $300 a year more in gasoline. But it makes the case that oil price increases are far less damaging to the economy over all than they used to be, because of a surge in domestic oil production over the last decade. from higher oil prices is likely a small fraction of what it was a decade ago and should get smaller still if U.S. oil production continues to grow as expected."