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US President Donald Trump launched a new attack on China and the European Union by applying tariffs on all goods arriving from the other side of the Pacific, but admitted that force of the dollar made victory difficult. He fights against the Federal Reserve, the central bank of his country, for having favored his competitor by increasing interest rates.
"I'm ready to go to 500," said the Republican in an interview broadcast yesterday. by the CNBC financial chain. He refers to the $ 505 billion deficit that the president says the United States has in the balance of goods with China. "They take advantage of us, and I do not like it, for years I do not like it," he said.
In the conversation, he also pointed out that the value of the yuan, the Chinese currency, falls like a rock.
Trump included in his criticism of the Federal Monetary Reserve that strengthens the dollar. To contain the advance of inflation in the world's largest economy, the Fed – the bookmarks of the Federal Reserve – has raised interest rates seven times since 2015 and is considering at least two more increases this year. This practice increases the cost of money and can have an impact on growth but, at the same time, prevents overheating of the economy.
Whatever the case may be, with unemployment at its lowest level and inflation The Fed has argued that the economy is strong enough to operate at low interest rates. higher interest.
The International Monetary Fund warned this week that a trade war between the two largest economies on the planet would delay global growth according to IMF chief economist, Maurice Obstfeld.
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