The Fed has been independent from political interference during its existence, so comments direct as these will undoubtedly stir debate. US stocks sank in early trading before rebounding.
“This is extraordinary to see Trump go after the Fed like this”, said Greg Valliere, chief global strategist at Horizon Investments.
Major indices in Germany and France, which had been trading largely flat, dropped by 0.3 per cent and…
Trump has ordered Commerce to investigate whether auto imports pose a threat to U.S.
Suderman said Brazilian soybean was about 20 per cent more expensive than the USA product and Chinese processors would have to decide whether to pass the extra cost on to consumers.
“Automobiles – that’s the 800-pound gorilla”, Brookings’ Dollar said. That’s because China only imports $129.9 billion in US goods each year.
Trump has also pledged to narrow the US’ trade deficit with China.
Along with pressing Chinese leaders to shrink the deficit, Trump’s administration has accused China of engaging in unfair trade practices by forcing American investors to turn over technologies to Chinese firms. His comments on the yuan indicate the president is willing to drag currencies into the conflict, which shows little sign of abating.
“And it is worth pondering whether this is a President who is going to break with 25-30 years of tradition in not interfering in Fed policy deliberations going forward”. They put on massive Tariffs and Barriers.
He called Federal Reserve chairman Jerome Powell “a very good man” but signaled his disagreement with the decision to raise interest rates.
Most economists believe the current economic climate, with the nation’s unemployment at historic lows and inflation at the Fed’s 2 percent target, justify recent interest rate rises and a strong US dollar.
After Trump’s interview with CNBC was made public, Lindsay Walters, a White House spokeswoman, said the president “respects the independence of the Fed”. His remarks Friday suggest his trade hawkishness may influence other realms of American policy, including its stance on the price of money. Most notably, during the Bill Clinton administration, Robert Rubin, first as head of the National Economic Council and later as Treasury Secretary, was to refrain from pressuring the Fed on policy, a precedent that has been followed by the administrations of George W. Bush and Barack Obama. “Very specifically to gain a trade advantage”, Fratto said.
The threat to place tariffs on all Chinese goods sent to the USA would effectively end the tit-for-tat trade battle between the two nations, as Chinese imports from the United States are a comparatively small $129.9 billion.