Trump says in­ter­est rates way too high

DNA (Daily News & Analysis) Mumbai Edition - - FRONT PAGE - Christophe­r Con­don –Bloomberg

New York: US Pres­i­dent Don­ald Trump slammed the Fed­eral Re­serve for high in­ter­est rates in a tweet on Tues­day, com­plain­ing the euro and other cur­ren­cies were “de­val­ued” against the dol­lar.

“The Fed in­ter­est rate way too high, added to ridicu­lous quan­ti­ta­tive tight­en­ing! They don’t have a clue!” Trump said on Twit­ter, re­new­ing his com­plaints about the US cen­tral bank a week be­fore it meets in Washington to discuss mon­e­tary pol­icy.

The pres­i­dent also tweeted that the US has “very low inflation,” call­ing it a “beau­ti­ful thing!”

US inflation was 1.5% in April, ac­cord­ing to the Fed’s pre­ferred gauge, and has been un­der its 2% tar­get for most of the last seven years.

Fed of­fi­cials meet­ing June 18-19 are ex­pected to de­bate the need for a rate cut to shelter the US econ­omy from fall­out, caused in part by Trump’s es­ca­lat­ing dis­pute with some of the US’S largest trad­ing part­ners. In­vestors see a 75% prob­a­bil­ity of a quar­ter-point cut in July.

Trump’s tweet on the euro ap­peared to have been prompted by a Bloomberg Opin­ion piece on Europe brac­ing for a sum­mer of

“over­tourism,” to which the pres­i­dent linked as he re­freshed his fre­quent vex­a­tion over the dol­lar’s value.

The Trump ad­min­is­tra­tion last month sig­nalled in­tent to turn the $5.1 tril­liona-day global cur­rency mar­ket into the next bat­tle­field of his trade war with a Com­merce De­part­ment plan that would al­low the US to ap­ply coun­ter­vail­ing tar­iffs on na­tions seen to be ac­tively driv­ing down their cur­ren­cies to boost ex­ports.

US Trea­sury Sec­re­tary Steven Mnuchin, speak­ing in an in­ter­view Satur­day in Fukuoka, Japan, where he was at­tend­ing a Group of 20 meet­ing, said the pro­posal does not sig­nal a pref­er­ence for a weaker dol­lar.

On Mon­day Trump vented in a CNBC in­ter­view that the US cen­tral bank doesn’t “lis­ten” to him and con­trasted its lack of obe­di­ence with the con­trol that Chi­nese Pres­i­dent Xi Jin­ping wields over the Peo­ple’s Bank of China.

Jerome Pow­ell, whom Trump in­stalled as Fed chair­man last year, has re­fused to re­spond to the pres­i­dent’s crit­i­cism and re­peat­edly stressed that pol­icy mak­ers will ig­nore po­lit­i­cal pres­sure as they set pol­icy to sup­port max­i­mum em­ploy­ment and sta­ble prices.

Fur­ther gains could be dif­fi­cult to come by for emerg­ing-mar­ket stocks

Dec '18

1105

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.