Donald Trump ratchets up criticism of Fed interest rate rises

Federal Reserve Board Chair Jerome Powell testifies during a House Committee on Financial Services hearing Wednesday

Mr Trump also suggested that higher interest rates left the United States at a disadvantage when compared to the European Union, China and Japan, allowing their currencies to weaken as the U.S. dollar strengthens.

President Donald Trump criticized the Federal Reserve for raising interest rates, a rare rebuke by a sitting president that upends longstanding executive branch protocol to avoid commenting on monetary policy.

Speaking with CNBC Friday morning, Trump said "I'm ready to go to 500", referring to the $505.5 billion in Chinese imports the USA took in past year.

Business Insider points to a report from Chinese publication Global Times claiming that Chinese textile manufacturers that produce Trump gear are having greater trouble getting their goods into the United States thanks to the current trade war between the US and China.

State-owned China Global Television Network on Friday posted a video, first spotted by Reuters, seemingly created to undermine support for Trump's trade policies.

The U.S. president also lamented the strength of the dollar and accused the European Union and China of manipulating their currencies.

The president also noted he is doing what's right for the American people and reiterated his long-held belief about the state of USA trade with China. "We've been ripped off by China for a long time".

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

The Fed has kept interest rates abnormally low by modern standards since the 2007-2009 financial crisis. "But at the same time I'm letting them do what they feel is best", he said.

The president also praised Fed Chairman Jerome Powell as "a very good man".

Last month, the Fed raised its benchmark rate for a second time this year and projected two more increases in 2018.

Donald Trump’s disgraceful bow to Russian Federation
Asked if there was anything he thinks Russian Federation should take responsibility for, Trump said: 'We're all to blame'. Former Defense Secretary Chuck Hagel also criticized Trump for his behavior, claiming that he "failed America today".

Testifying before Congress on Tuesday, Powell cited "robust job gains" and an overall "solid pace of growth" as reasons for recent and future rate hikes.

Later, the White House said in a statement that Trump respects the Fed's independence and was not interfering with its policy decisions.

In the CNBC interview, Trump said the higher value of the dollar "puts us at a disadvantage" while the Chinese yuan "has been dropping like a rock".

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

Mr Trump said increased rates had resulted in a stronger dollar which put the USA at a disadvantage compared with places where central banks are holding interest rates steady.

When asked about the stock market possibly falling if the United States imposes such a large amount of duties, Trump said: "If it does, it does".

"I'm not doing this for politics, I'm doing this to do the right thing for our country", he said.

Trump told CNBC that he was "not thrilled" with the Fed over rate hikes.

Powell has said he believes the economy is strong enough for the Fed to continue normalizing rates, which were held at a historically low level during the recovery.

"Likely result of presidential intervention is higher rates as Fed needs to assert its independence", Summers tweeted.

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