Interest Rates and Currencies: Trump Weights the Dollar



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In the afternoon Swedish time, the President then went on Twitter to express his dissatisfaction with what he meant by illegal manipulation of the currency in China and in Europe.

"I'm not happy that the Fed is increasing its borrowing costs and potentially slowing the economy," Donald Trump said during the interview.

"I do not like to see interest rate hikes when we spend so much work on the economy."

The statement made several eyebrows, as the White House traditionally avoids commenting on monetary policy on respect for the Fed's independence.

Donald Trump also said that he was allowing the Fed to do what they thought was best and even though his comments are unusual, he does not care because they are well-known opinions that he has as an individual.

should be punished because it is good and "the tightening harms everything we have done".

"The United States should be allowed to recover all the losses due to the illegal handling of the currency and the bad handshake, debt that expires and we raise the interest rates, n & rsquo; Is not it? " Comments are unlikely to affect interest rate decisions, if any, they will have the opposite effect.

Former US Finance Minister Lawrence Summers and former BOE member Adam Posen presented similar views on the need for the Fed to advocate for independence.

Richard Fisher, former head of the Dallas Fed, told CNBC An important feature of the US economy's prosperity is precisely to preserve the independence of the Fed, and that no President should not undertake his work. "If I were Powell, I would ignore the president and do my job and I'm sure he'll come to do exactly that," said Richard Fisher.

The dollar was not weakened on Thursday when the interview was released and picked up speed after the president's tweets.

At the Swedish close, it was traded around 1:17 against the euro and 111: 67 against the yen. The 10-year US interest rate rose 2 points from the Swedish close on Thursday to 2.87%

In the interview with CNBC, Trump has also addressed the trade dispute with China.

He said that he was ready to launch import duties on goods imported from China for $ 500 billion.

"I do not do it for politics, I do it because it's good for our country, we are exploited and I do not like it," he said.

Elsewhere in the United States, the head of the Fed spoke in St. Petersburg. Louis, James Bullard. Since 1965, several events have led to a gradual decline in the yield curve and a reversal of the yield curve in the near future is a real risk, he said

"There is a significant risk of In view of US inflationary expectations, it is useless to continue the normalization of monetary policy to the point of inverting the yield curve

"The simplest way to" 39, avoid a short-term reversal is that the decision makers "Regarding the speech, he also said that Donald Trump's comments on the Fed are not a surprise and that he is free to comment on the policy On the other hand, it is up to the Fed to make the best decisions to achieve the double objective.

Consumer prices in Canada rose 0.1% in June from the previous month and have increased

Analysts were expecting prices to have risen 0.1% from the previous month and increased 2.4% from the same month of the same month. last year, according to the Reuters survey

. Rising fuel prices pushed the year to date at the highest level since February 2012.

Last week, the Bank of Canada raised the interest rate for the fourth time in a row. a year.

"This contributes to the image that the bank might resurrect in September," said Derek Holt of Scotiabank, according to Reuters.

The Canadian dollar rallied around 1.1% on Friday

Swedish interest rates closed a few points while the krona broadly rose 5p to 8h88 against the dollar and fell from 2p to 10:39 against the euro on Thursday.

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