Dollar drops on Trump criticism; U.S., Europe stocks tepid

US President Donald Trump also says he's prepared to impose U.S. tariffs on all Chinese imports

US President Donald Trump also says he's prepared to impose U.S. tariffs on all Chinese imports

US government bond yields rose as Trump repeated his criticism a day earlier of the Federal Reserve's policy on raising interest rates, saying it takes away from the United States' "big competitive edge". The Fed has been raising rates since 2015 and has already hiked them five times since Trump took office in January 2017. China accused American officials of making false accusations Thursday as it fired back against a claim President Xi Jinping is blocking talks with the U.S. Earlier, White House Economic Adviser Larry Kudlow said Xi has no intention of making a deal over trade with the Trump administration.

Speaking about Fed policy in his interview with CNBC, Trump said he is "letting them do what they feel is best".

In the CNBC interview broadcast Friday, Trump reiterated his claim that the United States is "being taken advantage of" on issues including trade policy.

Earlier this month, the United States levied tariffs on $34 billion worth of Chinese goods, prompting retaliation from China that has hit USA farmers particularly hard, including in states that Trump won in 2016.

Companies in the US and other countries may find themselves less able to compete globally as import tariffs contribute to rising input costs, higher consumer prices, and lower demand for commodities from emerging markets as a result.

The dollar index, which measures the USA currency against a basket of its global peers, fell 0.8 percent, on track for the worst performance in July. "The President's views on interest rates are well known and his comments today are a reiteration of those long held positions, and public comments".

That made China the country that the USA has the biggest trade deficit with $375 billion past year.

For years presidents have avoided commenting on the Fed, which markets broadly trust to act in service of its dual objective - maintaining maximum inflation and stable prices - rather than a political aim.

Trump snubs CNN, slams NBC during Theresa May presser
Sanders replied that she was not aware of his comments, and when Acosta tried to press Sanders further, she said the following. She is honest as the day is long. "To issue a blanket condemnation of the network as "fake news" is also unfair ".

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

In a pair of tweets, Trump said China, the European Union (EU) and others had been "manipulating their currencies and interest rates lower" while the USA dollar strengthened, eroding "our big competitive edge".

US Federal Reserve Chair Jerome "Jay" Powell, who was appointed by Mr Trump earlier this year, said this week that policymakers remain committed to further, gradual increases. Seven are Fed board governors appointed by the president but they have 14-year terms "and can only be removed 'for cause.' " Feroli says. "We have been ripped off by China for a long time".

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

The Fed's policymaking committee has raised rates twice in 2018 and forecast two more bumps this year and three in 2019.

"By running tight monetary policy and loose fiscal policy, Trump has put nearly flawless conditions in place for a rally in the dollar", said Karl Schamotta, a strategist at Cambridge Global Payments in Toronto.

Slams Federal Reserve's decision to hike interest rates. We do our work in a strictly nonpolitical way, based on detailed analysis, which we put on the record transparently, and we don't. take political considerations into account.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.