Published: Sat, July 21, 2018
Markets | By Erika Turner

Trump amps up criticism of Fed interest rate rises

Trump amps up criticism of Fed interest rate rises

President Trump on Friday took his second swipe in two days at the Federal Reserve's interest rate hikes, alleging the central bank is taking away the country's competitive advantage, which sent the USA dollar lower.

"I'm ready to go to 500", Trump said during an interview on CNBC, referring to the dollar amount of Chinese imports to the United States past year, $505.5 billion.

"Look, I'm not doing this for politics", Trump said during the interview broadcast on CNBC's "Squawk Box" that was recorded Thursday.

Trump said that raising American interest rates makes investment in China comparatively attractive, because China manipulates its currency by artificially devaluing it.

St. Louis Federal Reserve Bank President James Bullard said on Friday the Federal Reserve would remain unaffected by Trump's comments on U.S. monetary policy.

Trump made a campaign pledge of designating China as a currency manipulator, but his administration has declined to make an official determination to that effect.

Donald Trump said he was concerned about the potential impact on the United States economy and American corporate competitiveness from rising rates and a stronger dollar. They put on massive Tariffs and Barriers.

The White House in June already threatened to extend punishing USA duties progressively to up to US$450 billion in Chinese imports.

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In the tense trade war with the United States, China's government has turned to an unlikely weapon: a cartoon bean. It would hurt both countries, but China's "state-run government can do more to artificially prop up its economy" and a cratering USA economy would nearly surely hurt Trump's presidency.

Donald Trump has also accused China of currency manipulation.

In an apparent reference to Fed rate increases, Trump tweeted: "Tightening now hurts all that we have done". I don't necessarily agree with it because he's raising interest rates, I'm not saying I agree with it, and I don't necessarily agree with it, I must tell you I don't.

President Donald Trump broke a multi-decade tradition by weighing in on the Federal Reserve's monetary policy.

But falling prices and lower sales would hurt US soybean farmers, it warns, pointing out that USA prices have fallen by 18 percent from May to early July, to their lowest this year.

The White House also attempted to assuage fears of the president pressuring the Fed immediately after Trump's comments were released.

CNBC said, "The Fed's independence from political interference has been a hallmark of its existence, so Trump's remarks have little precedent".

President Trump took a pot shot Thursday at the Federal Reserve for eyeing another interest rate hike that could slow America's strong economic growth. I don't really - I'm not happy about it.

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