Saturday, 18 August, 2018

Trump says Fed tightening hurts, accuses China of currency manipulation

Nellie Chapman | 20 July, 2018, 17:53

President TrumpDonald John TrumpNFL freezes policy barring players from protesting during anthem McConnell spokesman on Putin visit: "There is no invitation from Congress" Petition urges University of Virginia not to hire Marc Short MORE ramped up his criticism of the Federal Reserve on Friday, ripping the central bank for raising interest rates as financial tensions between the USA and key economic partners increase.

After Trump's interview with CNBC was made public, Lindsay Walters, a White House spokeswoman, said the president "respects the independence of the Fed".

'Because we go up and every time you go up they want to raise rates again.

"I don't really - I am not happy about it", he said. "But at the same time I'm letting them do what they feel is best", he added. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

In a statement to CNBC, the White House said: "Of course the President respects the independence of the Fed".

President Donald Trump on Friday said monetary policy tightening "hurts all that we have done", suggesting that higher borrowing costs undermine the economy's gains.

The Fed has raised interest rates seven times since December 2015 and has penciled in two more rate hikes for this year.

Trump said shortly after his first meeting with Chinese President Xi Jinping in 2017 that the country had stopped manipulating its currency because of his election.

'So somebody would say, 'Oh, maybe you shouldn't say that as president.' I couldn't care less what they say because my views haven't changed, ' he told CNBC.

Before winning the White House, Trump had publicly complained for years that the Fed was too loose with the US money supply.

Fed spokeswoman Michelle Smith declined to comment, Bloomberg reported. In emerging markets such as Turkey, the government of President Recep Tayyip Erdogan has felt no such restraint.

Trump tapped Powell, who had served as a governor at the USA central bank, to serve at its helm following Janet Yellen. The latter is usually seen as the domain of the Fed, while the U.S. Treasury secretary is typically the chief spokesman on the dollar. But the past three administrations under Bill Clinton, George W. Bush and Barack Obama have refrained from publicly commenting on policy decisions.

The last known example of USA presidential strong-arming came when George H.W. Bush was fighting for re-election. Then, his complaint was that interest rates were too low.