Trump Threatens Fed Leaders With Removal or Demotion For Not Following His Line
The US President Donald Trump made it clear that he wished the dollar could be weaker in comparison to other countries especially China with which America is at a trade war.
Trump on Dollar
High interest rate of dollar is a cause of concern for Trump because it is making the US companies especially manufacturers to compete with other economies including China. Trump highlighted the gravity of the situation in a series of tweets on Thursday. On one such tweet, he wrote that he wasn’t happy with the dollar strengthening but wished it to be weaker.
Dollar rate cut
The Fed took a strong measure by cutting its key policy rate by a quarter point last week but this step failed to please president Trump who is asking for more. Further rate cut would lower the value of dollar against other currencies but there are other factors at play that can help in lowering the value.
US-China trade war
In the latest exchange of words, the US accused China of devaluing its yuan and called Beijing a currency manipulator. With these accusations, the trade war between the two economic giants goes to next level. The world economy is paying a high price of this trade war.
Former Fed leaders – Paul Volcker, Alan Greenspan, Ben Bernanke and Janet Yellen – called for protecting the political independence of the central bank. They condemned the move to remove or demote Fed leaders for not following Trump’s line as discouraging for the bank. Meanwhile, the Fed chief Jerome Powell wished that he could complete his term amid threats of removal by president. For more information please visit our latest trending News