[ad_1]
President Donald Trump lambasted China and the European Union (EU) for its weak currencies and declared that a dollar stronger and rising interest rates undermine the "competitive advantage" of the United States, giving a new blow to the Federal Reserve .
"China, the European Union and others have manipulated their currencies and their interest rates", the president said in the Twitter network.
China, l 39 European Union and others have manipulated their currencies and lower interest rates, while the United States raises rates while dollars get stronger and stronger each passing day, which we takes away our competitive advantage.As usual, not an equal playing field …
– Donald J. Trump (@ realDonaldTrump) July 20, 2018
In a second message, he adds that United States "He raises his rates as the dollar gets stronger every day." This situation "eliminates our competitive advantage," said the president
saying the current tighter monetary "night to everything we did." The United States should be able to recover what has been lost due to the illegal handling of coins. "
" Debt maturities are approaching and we are raising rates, really? "Trump expressed, in direct criticism of the Fed, the bank Central America
Already on the eve, in an interview, Trump had questioned the announcement made this week by the president of Fed Jerome Powell on the continuity of the interest rate hike process According to Trump, this rate hike makes the cost of money higher and has an impact on growth, but at the same time avoids the overheating of the economy
"I am not happy […]. it makes me happy, but at once I let you do what you think is better, "he said.
BREAKING PRACTICES
Trump breaks with decades of tradition in which presidents avoid commenting directly on the dollar or the manner of US monetary policy, which is generally regarded as the domain of the Fed, while the US Treasury Secretary is usually the main
For years, the American nation has had the idea that a strong dollar is good for your economy.
The Treasury Secretary, Steven Mnuchin, is is going to Buenos Aires Friday to meet with his G-20 counterparts, where he will likely be confronted with questions about US monetary policy and he sees the FED as an independent. [19659013] Mnuchin was criticized by his counterpart He spoke of foreign exchange. A few hours after assuming the position of Treasurer last year, Mnuchin was warned by his Tokyo counterparts in Berlin that the new US administration should refrain from talking about currencies.
President's comments are likely to put a limit According to Viraj Patel, exchange strategist at ING Bank NV, Bloomberg, the recent rebound in the US dollar so far this year
The Dollar Risk to "dissociate itself from interest rate differentials". Trump's argument that China and the EU manipulate foreign currency contradicts a six-monthly Commission report. Treasury Department published in April which has refrained from naming a currency-manipulating country on the basis of specific criteria.
(Source: AFP, Bloomberg)
[ad_2]
Source link
