When speaking to the ‘Wall Street Journal,’ Trump stated that he was unsure as to whether a mistake was in relation to appointing Jerome Powell as chair of the Federal Open Market Committee.
Trump also stated that he does no support the Federal Reserve, nor does he agree with the Fed’s attempts to increase interest rates, feeling it is a threat to the US economy.
His comments echoed what he has told reported in October on the White House Lawn, as well as interview with Reuters in August. trump
Trump’s Comments Not Taken Seriously
National leaders trying to lead the path of interest rates has done bode well in the past. Turkish President Recep Tayyip Erdogan resisted calls to increase interest rates to support the falling Lira. This led to an 82 percent drop against USD back in August 2018.
However, it is thought that the comments made by Trump would not have any impact on USD, despite the negative connotations of his comments.
Chief US economist states that the move by Trump was to blame the Fed for any potential downturn in advance, for fear that weakness of the currency could affect the 2020 elections.
Critics have accused Trump of other theatrics during the week, including the calling of troops to be sent to the border on the back of reports that Central American migrants heading toward the US-Mexico border.
Many state that rather than imposing the Law, Trump is merely looking to shine the limelight on the current immigration policy, with such actions being deemed unnecessary.
The US Dollar index was trading at 96.25 on Wednesday, with GBP-USD at 1.2931 and EUR-USD pairing was 1.1414.
Interest rates have been raised eight times by the Federal Reserve since 2015, three of which have been since Powell was made chair of the FOMC. The range has fluctuated between 2% and 2.25%.
US Ground Domestic Product grew quickly during the second quarter, the quickest rise seen in four years. The economy was also given a boost thanks to a 50 percent cut in corporate tax. This equated to $1,200 saving to each household in the US.
It is predicted that economic growth will decrease to 2 percent, with the Fed ceasing any further plans to increase rates moving forward.
Despite the US economy facing some problems, it has shown to be resilient, but there is still uncertainty as to whether this is due to President Trump’s tax cuts, or the cautious approach taken by former Obama.
Despite USD standing its ground, the future remains uncertain as would depend on what actions are being taken as opposed.