"The dollar is an important issue today especially because we have been on a rise for quite a long time", said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas. I don't necessarily agree with it, because he's raising interest rates, I'm not saying that I agree with it, and I don't necessarily agree with it.
But one JPMorgan economists thinks Trump's public desire for lower interest rates could actually backfire. "I want them to do well", the USA president said of China. "I may not look like much, but I am very important".
Mr Trump has said before that he favours low interest rates, and dismissed concerns about his interference.
Trump's comments come amid a multitude of trade threats between major economies around the globe and after his initial tariffs on Chinese goods sparked a major conflict.
The US dollar relinquished gains from earlier in the day and Treasury yields dropped following the president's remarks.
The Fed had no comment.
The comments raised eyebrows in the U.S., where presidents are expected to avoid criticism of the central bank in deference to its independence. Nominated by Trump and confirmed by the Senate with broad bipartisan support, Powell has a four-year term as chairman that ends in 2022. But while the Federal Reserve's current benchmark rate is less than half of China's, the Fed is in the middle of steadily ratcheting its lending rate higher.
But the president also acknowledged he was aware of the traditions that president's typically allow the Fed to operate independently to ensure the smooth functioning of the world's largest economy.
"I'm not thrilled", he said.
The President was speaking with CNBC when he was asked if there was any limit on his potential "trade war" with China, saying "We're down $500 billion..."
Shipping containers, including those of China Shipping, a shipping conglomerate under direct administration of China'a State Council, await transportation on a rail line at the Port of Long Beach on July 12, 2018 in Long Beach, California.
The last known example of USA presidential strong-arming came when George H W Bush was fighting for re-election.
The chance inflation might accelerate has increased after the massive tax cut Trump championed previous year, which has raised the U.S. debt and budget deficit.
Philip Levy, a trade expert at the Chicago Council on Global Affairs and a former White House trade adviser, suggested that Chinese officials have been frustrated and confused by their previous failed efforts to reach an agreement. "I really like President Xi a lot, but it was very unfair".