Trump slams currency manipulation by Brussels & Beijing

Galtero Lara
Julio 23, 2018

"The [Fed's policy] committee has a mandate to keep inflation low and stable and obtain maximum employment for the United States economy, so people can comment, including the president and other politicians, but it's up to the committee to try to take the best action we can to achieve those objectives", St. Louis Federal Reserve Bank President James Bullard said Friday.

"Trade tensions are likely to remain in the headlines as Juncker meets President Trump in Washington to discuss potential USA tariffs on European autos", asset manager Insight Investment, which is owned by BNY Mellon, said in a note.

"Trump's comments that he was "ready to go to 500" of tariffs in imports from China; that he was "not thrilled" about the prospects of Fed hikes and that "China, the European Union and others have been manipulating their currencies" saw a volatile close to the week".

Bundles of banknotes of U.S. Dollar are pictured at a currency exchange shop in Ciudad Juarez, Mexico, January 15, 2018. But at the same time I'm letting them do what they feel is best. He also called Jerome Powell, whom Trump nominated to lead the Fed, a "very good man". The Fed has been independent from political interference during its existence, so comments direct as these will undoubtedly stir debate. Powell told lawmakers that "for now - the best way forward is to keep gradually raising the federal funds rate".

It had rallied about 1.4 percent on Friday after strong retail sales and inflation data reinforced expectations for another interest rate hike by the Bank of Canada this year.

Presidents have historically avoided criticizing the Fed, which is created to be independent from political interference.

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Mr Trump has said before that he favours low interest rates, and dismissed concerns about his interference.

Despite this, Trump said that the Fed should keep rates low so the US economy could make up lost ground to China.

The Fed has raised the benchmark lending rate twice this year after three increases in 2017 and two more rate hikes are expected this year as the central bank removes stimulus from the economy to keep a lid on inflation. Is a currency war coming? "I'm doing this to do the right thing for our country", Trump said in a CNBC interview aired Friday. So somebody would so 'oh, maybe you shouldn't say that as a president.' I couldn't care less what they say, because my views haven't changed.

Asian stocks took Wall Street's cue on Monday with MSCI's broadest index of Asia-Pacific shares outside Japan.MIAPJ0000PUS falling 0.2 percent. The greenback quickly lost ground and Treasury yields retreated.

But current and former Fed officials didn't sound overly concerned about the commander-in-chief's perspective.

In the CNBC interview broadcast Friday, Trump reiterated his claim that the United States is "being taken advantage of" on issues including trade policy. Trump is certainly allowed to say what he wants about The Fed, and he wouldn't be the first president to try something, and like everything else, the Fed is now a partisan topic.

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