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July 19, 2018 | Trump Criticizes Fed Rate Hikes and Blasts the Strong Dollar

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
Trump is speaking his mind on interest rate policy, a subject that is normally taboo for presidents.

President Donald Trump said Thursday he hoped the Federal Reserve would stop raising interest rates, delivering an unusual censure of the central bank.

“I am not happy about it,” Mr. Trump said about interest-rate increases during an interview conducted Thursday by CNBC.

Mr. Trump said he was “not thrilled” because every time the economy strengthens “they want to raise rates again.”

But he also said he wouldn’t interfere with the Fed. “I’m letting them do what they feel is best,” he said.

Easy Money

Europe’s “making money easy, and their currency is falling,” Mr. Trump told CNBC. “China, their currency is dropping like a rock. Our currency is going up. I have to tell you, it puts us at a disadvantage.” A stronger greenback makes U.S. exports relatively more expensive on world markets.

A Federal Reserve spokeswoman declined to comment Thursday.

Mr. Trump said he knew some people didn’t think it was appropriate for the president to comment on interest rates or the dollar, but he said of those concerns, “I couldn’t care less what they say.”

During his presidential campaign, Trump was highly critical of Fed Chair Janet Yellen. He accused her of keeping interest rates low to help Democrats. Ms. Yellen denied the accusation and said politics didn’t factor into the Fed’s decisions.

In addition to not understanding trade, Trump just proved he does not know anything about currencies either.

“Easy money”? Sheeesh! And what about that selective memory?

Mike “Mish” Shedlock

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July 19th, 2018

Posted In: Mish Talk

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