US President Donald Trump has criticized the US Federal Reserve for its tight monetary policy. It is helping to make the dollar stronger and reduce US competitiveness, he said yesterday at a conference. „We have a gentleman at the Fed who likes a very strong dollar,“ Trump said.
„I like a strong dollar, but I want a dollar that’s great for our country, not a dollar that is strong enough to keep us from trading with other countries,“ the US president explained his position.
Renewed criticism of Fed chief
Trump has already criticized the Fed and Jerome Powell, its nominated Fed chief, for interest rate hikes in the past. The Fed announced at the end of January that it would take a quieter approach after four rate hikes last year. Powell recently pleaded for a „patient“ approach to monetary policy. He pointed out that growth had slowed at important trading partners such as China or Europe.
Trump has made reducing the US’s huge trade deficit with other economies to its economic policy priority. He tries to achieve this by terminating existing commercial contracts or exerting pressure on protective tariffs. In the case of Europe, these tariffs are about to hit the auto industry.
