Trump slams currency manipulation by Brussels & Beijing

Monday, 23 Jul, 2018

The chance inflation might accelerate has increased after the massive tax cut Trump championed, which has raised the United States debt and budget deficit.

In a series of tweets on Friday morning, Trump doubled down on his vocal opposition to the Fed's rate hike, complaining that the being "penalized because we are doing so well".

China exported goods worth $505.5bn to the United States in 2007, compared to $129.9bn of American goods sent to China.

In a taped interview with the business channel CNBC, Trump said "I'm willing to go to 500", referring roughly to the $505.5 billion in goods imported past year from China, the New York Times reported. "Crazy times we live in, I love it".

Kernen asked the president whether he would implement tariffs on all Chinese goods imported to the U.S.

So far, Washington imposed $34 billion worth of tariffs on China, with $16 billion to come at a later point, and also said it would assess 10 percent tariffs on an additional $200 billion worth Chinese goods.

U.S. automakers, dealers and suppliers remained united in opposition to the president's tariffs for fear it would drive prices up. "I couldn't care less what they say, because my views haven't changed". "But at the same time I'm letting them do what they feel is best", he said. "I'm surprised the dollar is not higher".

"His statement doesn't make a lot of sense to me", said Mike Lorizio, head of Treasuries trading at Manulife Asset Management. "But it was very unfair".

With trade tensions rising, so is the pushback in the US from private business that see potentially devastating ramifications, not only from China, but from Europe, Canada, and other countries in Asia.

The growing share of worldwide trade under threat has raised the prospect the escalating trade war could harm the global economy by disrupting companies supply chains, pushing firms to hold off on investments, and making goods more expensive for consumers.

Trump is certainly allowed to say what he wants about The Fed, and he wouldn't be the first president to try something, and like everything else, the Fed is now a partisan topic.

"A good sign of proof there is who he has been naming to the open board spots at the Fed", he said.

"We have a long tradition here of conducting policy in a particular way, and that way is independent of all political concerns", Powell said in a radio interview last week with "Marketplace".

Mr Trump's comments come before the most recent round of U.S. tariffs has had time to take effect.

The dollar index, which measures the dollar against a basket of currencies, fell about 0.1% after the remarks became public.

Beijing can't tax as many USA goods - the United States exports far less to China than it imports - but it has other tools.

Trump said he was concerned that the "Chinese currency was dropping like a rock" and the strong USA dollar "puts us at a disadvantage". "Currency is now part of the trade war folks", said Greg McKenna, chief market strategist at AxiTrader.

It wasn't the first time in history the Fed has faced pressure from a US president.