President Trump speaks to reporters outside the White House about the escalating U.S.-China trade war.
QUESTION: Are you thinking of canceling the trade talks next month with China?
PRESIDENT DONALD TRUMP: So China wants to settle this deal. They've had the worst year that they've had in many, many decades, and it's getting only worse. Thousands of companies are leaving China. They would like to make a deal. I'm not ready to make a deal.
QUESTION: But are you willing to cancel the talks next month?
TRUMP: Maybe. We'll see what happens. Right now the talks are scheduled in September. Whether or not we're talking about China, whether or not they're canceled, we'll see.
Look, as I said, our people are not paying for these billions and billions of dollars that came in, $16 million of which I gave to the farmers because they were targeted by China. And that's just a small fraction of what we're taking in. So they are not, because what China has been doing is they're currency manipulator. They've manipulated the value of their currency, and that's where the money comes--and also, they put tremendous money into the system.
So if you look, prices have not risen. Our people have not paid. So all of these guys that say, oh, Trump, Trump, Trump, they don't know what they're talking about. Now, China is unique. That doesn't mean it happens with other countries. It probably doesn't. But the prices have not gone up. In fact, we have virtually no inflation in our country.
If the Federal Reserve would bring it--bring down interest rates over a period of time, I would love to see a point or even a little bit more than that. If they would stop quantitative tightening, we have a rocket ship. I mean, we're doing well without it, but were being handcuffed by the Federal Reserve. If they would stop that, it would be incredible.
Watch Trump's full Friday presser: