Trump Blasts Fed, threat to put tariffs on all Chinese goods

President Donald Trump lambasted China and the European Union for their weak currencies and said that a stronger dollar and rising interest rates undermine the competitive edge from America, taking a new blow to the Federal Reserve. "China, the European Union and others have manipulated their currencies and their interest rates down, while the US is increasing rates as dollars become more and more strong every passing day – – The United States should not be penalized because we are doing so well. "

In an apparent reference to Fed rate increases, Trump added:" Tighten now hurts all We Are Rising Rates – Really? "

In a CNBC interview that aired earlier on Friday, Trump said he was" ready to go "with tariffs on $ 500 billion of dollars from China. e goods, about the value of all US imports from the Asian nation last year. "We take advantage of it and I do not like it," he said.

Trump's comments changed for a week when he was faced with growing pressure on his relationship with Russian President Vladimir Putin. Trump has been criticized for his lukewarm support during a press conference with Putin for the discovery by US intelligence agencies that Russia has been ingested in the 2016 elections.

It marks the last twist of a growing trade war with the countries accused by President Trump has so far focused on the use of tariffs as leverage to try to convince China and to 39, other countries to open their markets

. 19659009] Trump breaks with decades of tradition that presidents avoid commenting directly on the dollar or the trajectory of US monetary policy, the latter being generally considered the domain of the Fed, while the US Treasury Secretary United is usually the main spokesperson on the dollar. For years, the United States has argued that a strong dollar is good for the US economy.

Treasury Secretary Steven Mnuchin will travel to Buenos Aires on Friday for two days of negotiations with his G-20 counterparts. the US dollar policy and he sees the Fed as independent. Mnuchin has been criticized by his international counterparts about US currencies before. A few hours after being sworn in as head of the Treasury last year, Mnuchin was warned by his Tokyo counterparts in Berlin that the new US government should refrain from talking about currencies.

Presidential comments likely put a cap on Rira, said Viraj Patel, an exchange strategist at ING Bank NV

There is a risk that the dollar will break down credit spreads. Interest as investors reconcile with the United States Mercantilists of the White House. The US dollar policy, according to Patel

Trump's comments that China and the EU handle the currencies contradict a semi-annual report from the Treasury Department published in April that avoided naming a currency-manipulative country based on specific criteria. Fed

Trump criticized Thursday the Fed's series of rate increases, breaking with more than two decades of White House tradition of avoiding comments on monetary policy out of respect for the Fed. Independence of the US Central Bank

The Fed has raised its interest rates five times since Trump took office in January 2017, including two under the chairmanship of Jerome Powell, the President's choice replacing Janet Yellen. In the CNBC interview, Trump called Powell a "very good man."

The US economy has so far shown resilience to Trump's threat to bring a trade dispute to the next level. The president has already angered his allies by imposing tariffs on steel and aluminum, and he is considering a widely criticized decision to impose tariffs on imports of automotive products.