Trump rips Fed again for hiking interest rates

Andrew Cummings
July 21, 2018

Donald Trump escalated economic global tensions on Friday, lashing out a range of targets that included the European Union, the Federal Reserve and China, indicating that he is prepared to raise tariffs on Chinese imports from $34bn to cover the entire $505bn of Chinese imports.

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 a year ago from China. "We have been ripped off by China for a long time".

"Farmers have been on a downward trend for 15 years".

Oil prices pared early gains on the trade worries and were on course for a third straight week of falls.

Opting for the unusual narrator illustrates how Beijing views soybeans as a powerful tool in its battle with its top trading partner. "Now any decision that the Fed makes, market participants are going to try to put it in the context of what they know are the president's and the administration's desires". Canada charges 275% on Dairy.

With trade tensions rising, so is the pushback in the USA from private business that see potentially devastating ramifications, not only from China, but from Europe, Canada, and other countries in Asia. More than 70 per cent of Republican and Republican-leaning USA adults believe increased tariffs between the United States and its trading partners will be good for the country, according to a Pew Research Centre survey.

He said on Twitter that the Fed's policy on raising interest rates takes away from the United States' "big competitive edge" and could hurt the USA economy.

"As usual, not a level playing field".

"Trump wants to win over more voters by starting a trade war", the cartoon says. Juncker is set to meet with Trump on Wednesday.

"The secretary will nearly certainly hear complaints about these remarks at the G20, especially in his bilateral discussions", said Mark Sobel, a former senior Treasury official who left earlier this year, after serving as USA executive director at the International Monetary Fund.

Trump made a campaign pledge of designating China as a currency manipulator, but his administration has declined to make an official determination to that effect.

Trump has ordered the Commerce Department to investigate whether auto imports pose a threat to USA national security that would justify tariffs or other trade restrictions.

But, she said, "I'm not filling myself with expectations or predictions" for Juncker's trip.

Those comments, plus Trump's criticism of Federal Reserve interest rate hikes, caused the dollar to fall back against other currencies, however, including the pound which rebounded from 10-month lows versus the greenback.

The dollar began taking a hit on Thursday after Trump suggested that the Fed's policy of raising U.S. interest rates was pushing up the dollar, in turn hurting American exporters.

The comments also signaled an undiminished appetite for battle on multiple fronts after a week dominated by coverage of the fallout from his dealings with Russian President Vladimir Putin. Low interest rates reduce the costs of borrowing money and fuel economic expansion, but risk spurring rampant inflation and financial market bubbles.

But falling prices and lower sales would hurt USA soybean farmers, it warns, pointing out that US prices have fallen by 18 percent from May to early July, to their lowest this year.

The Chinese yuan and the euro have both lost value against the dollar this year, though in 2017 the dollar had its worst year since 2003.

The Fed is led by chairman Jerome Powell, who was hand-picked by Trump in February to succeed Janet Yellen for a four-year term.

'I'm not thrilled, ' Trump told CNBC in an interview aired Thursday.

President Trump isn't happy with the Federal Reserve-but the fact that he said so is surprising.

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