Trump Accuses Fed Reserve Of Hindering US Exports

The Hill reports:

President Trump on Thursday put renewed pressure on the Federal Reserve to cut interest rates, arguing the strength of the U.S. dollar is hurting American manufacturers.

In a series of tweets, Trump accused the Fed of hindering U.S. exports by keeping interest rates relatively high compared to other economic powers. He suggested the central bank should weaken the dollar by lowering interest rates.

While a weaker dollar can help U.S. exporters, presidents and Treasury secretaries have long touted a strong dollar as a pillar of financial strength. Trump’s comments Thursday in favor of weakening the dollar breaks from more than two decades strong-dollar policy and furthers his intrusion on the Fed’s independence.

As your President, one would think that I would be thrilled with our very strong dollar. I am not! The Fed’s high interest rate level, in comparison to other countries, is keeping the dollar high, making it more difficult for our great manufacturers like Caterpillar, Boeing,…..

— Donald J. Trump (@realDonaldTrump) August 8, 2019

….John Deere, our car companies, & others, to compete on a level playing field. With substantial Fed Cuts (there is no inflation) and no quantitative tightening, the dollar will make it possible for our companies to win against any competition. We have the greatest companies…

— Donald J. Trump (@realDonaldTrump) August 8, 2019

….in the world, there is nobody even close, but unfortunately the same cannot be said about our Federal Reserve. They have called it wrong at every step of the way, and we are still winning. Can you imagine what would happen if they actually called it right?

— Donald J. Trump (@realDonaldTrump) August 8, 2019