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US President Donald Trump has publicly criticized the Fed's monetary policy in a rare position in which the White House is targeting the central bank, which has always baderted its independence.
His remarks led to a decline in the dollar's price and the decline of the Asian financial markets.
Trump said in an interview with CNBC: "I am not satisfied" with the monetary policy that is gradually increasing interest rates. "At the same time, I let them do what they think is the best."
After confirming that he had chosen a "very good man" for the Fed's presidency, Jerome Powell named him successor to Janet Yellen, Trump said he was " not happy with his monetary policy. "Because we are growing, they still want to raise rates, I'm not happy about it," he said.
The US president also condemned the rise in the dollar's price because of the outlook for rising interest rates and trade disputes. "Look at the price of the euro, it goes down, China loses its currency, it puts us in a situation that does not serve our interests," he said.
With these remarks, Trump again violates the prevailing standards according to which the US President respects the independence of the Fed's decisions.
After the broadcast of Trump's interview, the dollar registered a drop in New York. The euro was around 19:00 GMT at 1,1646 dollars, against 1,1639 on Wednesday, while the dollar reached 112.43 yen against 112.86 yen on Wednesday.
In Tokyo, the stock market opened Thursday down after four sessions of the rally. The Nikkei <.N225> was down 0.05% to 225,754.17, the Topix index of all companies having lost 0.02% to 1,749.18 points.
The Federal Reserve, which began two years ago as an exit from zero interest rate policy, plans to gradually raise the benchmark interest rate to twice this year to 2, 50% instead of 2%.
Omar Eisner, who works for the Commonwealth Foreign Exchange, said that Trump's remarks were "important because they violated a tradition strictly respected by former presidents, the independence of the US central bank" .
He added that the dollar was particularly affected by Trump's remarks that "the strength of the dollar against the euro and the Chinese currency are a major obstacle to the US economy," added President Trump and President of the United States. Treasury Secretary Stephen Menuchin.
"Any other indication that the administration considers the dollar as a weapon in its arsenal in a trade war can clearly affect [le dollar] in the future."
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