Published: Sat, July 21, 2018
Worldwide | By Isabel Fisher

Trump Blasts Fed Rate Hikes Again, Says Strong Dollar Hurts U.S.

Trump Blasts Fed Rate Hikes Again, Says Strong Dollar Hurts U.S.

In a pair of tweets, Trump said "China, the European Union and others have been manipulating their currencies. while the raising rates while the dollar gets stronger and stronger with each passing day".

After the interview, Trump reiterated criticism of planned interest-rate hikes by the Federal Reserve, saying in a Twitter post that tightening policy would diminish any U.S. advantage in trade and exacerbate losses from "BAD trade deals".

US President Donald Trump Friday said he's willing to hit all Chinese goods imported to the United States with tariffs if necessary.

"We're down a tremendous amount", Trump said in the interview, which was recorded on Thursday, about trade imbalances with China.

The harsh comments took fresh aim at pillars of the worldwide economic system and underscored Trump's break with long-established norms by again openly rebuking the Federal Reserve for raising interest rates.

"The escalating trade war, if it goes badly, could be a risk for the US economy", Bullard said, adding he understands the policy's objective. Chinese exports would also be relatively cheaper, possibly balancing out suggested increases in tariffs by the Trump Administration.

The president told CNBC that he is ready to place a tariff on every single Chinese good entering the the latest salvo in what could quickly turn into an unprecedented trade war.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 18, 2018.

Beijing is targeting, in particular, sectors like American agriculture that could harm Trump politically at home. Rather, he may be prepared to wait as long as he feels it necessary to force other countries to adopt trade rules more favorable to the United States.

"There's no negotiating going on that I can see", Dollar said.

The US dollar fell against major currencies on Mr Trump's threat to impose more import tariffs and his repetition of complaints about rising interest rates and the strength of the US dollar.

"I am not happy about it", Trump said.

The currency movements also reverberated in foreign stock markets, pressuring bourses in Tokyo, Europe and London.

His comments did not help to push the dollar down versus the yuan, however. President Xi Jingping "cannot lose face with his own people by giving in to the United States", Dollar said.

Trump's comments are facing criticism.

Analysts said China seemed content to let the yuan weaken - for now.

Like this: