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On the social network, Twitter wrote that the rate hike policy presents a "great competitive advantage" for the United States and complained of a dollar exchange rate too high in a situation where the European Union and China handle exchange rates. "China, the European Union and others manipulate their currencies and keep interest rates low, as US rates rise and the dollar gets stronger every day – we prepare therefore a great competitive advantage, "wrote Trump. "Unjust conditions as usual," he added.
China, the European Union and others have manipulated their currencies and interest rates down, while the United States raises rates as the dollar gets more in stronger with each passing day – by taking away our great competitive advantage.
20 July 2018
The dollar's exchange rate after the presidential tweets further deepened the current decline against the euro and the Japanese yen. Shortly after 16:00, CEST lost about 0.7% to 111.66 yen against yen, while the euro against the dollar added about 0.6% to 1.1711 dollar.
US presidents have rarely criticized the central bank in recent decades because the independence of the institution is considered an important element of economic stability. For D. Trump, however, reducing the trade deficit is a priority, the combination of rising interest rates and a stronger dollar threatens export growth.
The president criticized the Fed's interest rate policy as early as Thursday when he provided an interview with CNBC. He said, for example, that higher rates are worrying him and that they could have a negative impact on the US economy. The Fed has raised interest rates since 2015, and since Trump's entry to the White House in January 2017, she has risen five times.
However, most economists, according to Reuters, believe that the current state of the economy warrants a rise in interest rates as well as a strong dollar. The unemployment rate is close to the historical mines in the United States, while inflation is for two per cent of the Fed's goal.
This question is closely linked to Trump's current trade policy, as the strong currency increases exports and has a negative impact on the management of exporters.
The comment of the Fed's Board of Governors on Reuters declined to give. Jerome Powell, head of the bank, said early July that pressure from US politicians was not worrying.
Chairman of the Federal Reserve Bank in St. Louis James Bullard said that Trump's comments will not have any impact on interest rate decisions. The Committee, which sets them up, is charged by the US Congress to support a strong labor market and stable prices
