US President Donald Trump says he is ready to impose tariffs on all $US500 billion ($673.7 billion) of imported goods from China, threatening to escalate a clash over trade policy that has unnerved financial markets.
He said the American Federal Reserve's course of tightening monetary policy "now hurts all that we have done".
Those comments, plus Trump's criticism of Federal Reserve interest rate hikes, caused the dollar to fall back against other currencies, however, including the pound which rebounded from 10-month lows versus the greenback. So the Fed's rate hikes have lit a fire under the US dollar, something which tends to widen the country's trade deficit as foreign countries with weaker currencies become much cheaper to import from. Rather, he may be prepared to wait as long as he feels it necessary to force other countries to adopt trade rules more favorable to the United States.
"Given what we know about Powell, we see little chance the President has gotten in his head", Feroli wrote in a note to clients. "If a decision is a close call, then the appearance of kowtowing to the president may bias them toward raising rates".
"Instead of making their exports better, they make them cheaper", The Balance says.
In excerpts of an interview with United States television network CNBC aired Thursday, Trump said a strong dollar "puts us at a disadvantage", adding that the Chinese yuan "has been dropping like a rock".
"I'm not thrilled", Trump said, adding "Because we go up and every time you go up they want to raise rates again".
England vs India 3rd ODI
Pacers Liam Plunkett and David Willey combining well whileAdil Rashid, Adil Rashid and Mark Wood supporting the duo handsomely. Wicketkeeper Mahendra Singh Dhoni and Shikhar Dhawan , however, got the good starts but could able to utilise it.
The Fed has hiked interest rates twice this year and could jack the rate up twice more before year's end.
"People are underestimating what we're headed for", said Rod Hunter, a lawyer who served as a White House economic adviser under President George W. Bush.
Despite this, Trump said that the Fed should keep rates low so the USA economy could make up lost ground to China.
"We are being taken advantage of and I don't like it", the president said in a taped interview that aired today.
Trump defended his comments to CNBC by saying he is "just saying the same thing that I would have said as a private citizen".
It turns out President Bill Clinton didn't want to speak about the Fed's decisions as a tactic to avoid looking vulnerable.
"Our currency is going up", Trump said.
"They literally have the President of the United States trying to jawbone currencies and put pressure on the Fed to keep the currency weak. Why?"