Trump Threatens to Place Tariffs on All $500B China Imports, Blasts Fed Again
Mike Mish Shedlock
The WSJ reports Trump Escalates Criticism of Fed, Renews Threat on China Imports
President Donald Trump escalated his criticism of the Federal Reserve Friday, saying in a tweet that its efforts to raise short-term interest rates hurt the U.S. economic expansion, and he accused China and the European Union of manipulating their currencies to hurt the U.S. on trade.
The tweets came shortly after CNBC broadcast an interview with Mr. Trump in which the president said he was prepared to raise U.S. tariffs on $500 billion worth of imports from China as part of his push to narrow U.S. trade deficits with China. In the same interview he said he wasn’t happy about Fed rate increases.
The central bank’s campaign to slowly raise interest rates “hurts all that we have done,” he wrote Friday. “The U.S. should be allowed to recapture what was lost due to illegal currency manipulation and BAD Trade Deals. Debt coming due & we are raising rates - Really?”
The president has threatened tariffs on $500 billion in Chinese imports before. On July 6 on Air Force One, the president told reporters that tariffs could eventually hit all U.S. imports from China, affecting nearly $505 billion in imports.
When asked during Friday’s CNBC interview, “Will you ever get to 500, though?” Mr. Trump responded that he is “ready to go to 500,” referring to the approximate dollar value of Chinese goods exported to the U.S. last year.
“I’m doing this to do the right thing for our country. We have been ripped off by China for a long time,” he said.
China is guilty as charged. So is the EU. So is Japan. So is the US.
What else do you call it when trillions of dollars of QE are sloshing around in an attempt to keep interest rates artificially low?
Interest rates and interest rate differentials affect currencies. The only thing different about China and Japan is both do direct Forex intervention. You can add the Swiss National Bank to that list as well.
So yes, they whole damn pack of them, including the US are manipulators.
Mike "Mish" Shedlock