News 15 may — 13:19

Trump says Fed could help 'win' trade war with China

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US President Donald Trump has suggested the Federal Reserve could support the US in its simmering trade battle with China, BBC reports.

The trade dispute between the world's two largest economies escalated this week with tariff hikes on both sides.

In a post on Twitter, Mr Trump said China would move to stimulate its economy to deal with the fallout.

If the Fed were to "match" that potential Chinese stimulus, it would be "game over", he said.

"China will be pumping money into their system and probably reducing interest rates, as always, in order to make up for the business they are, and will be, losing," Mr Trump wrote on Twitter.

"If the Federal Reserve ever did a 'match,' it would be game over, we win! In any event, China wants a deal!."

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