Strong dollar hurts U.S. competitiveness, says Trump

|


  • President criticizes the Federal Reserve
  • Trump wants a dollar “that’s great for our country”
  • Feud with Fed Chair Jerome Powell continues

President Donald Trump once again criticized the Federal Reserve on Saturday, saying that tight monetary policy from the U.S. central bank was a contributing factor to a strong dollar, which was hurting the competitiveness of the United States.

Speaking at the annual Conservative Political Action Conference in Oxon Hill, Maryland, Trump stated: “We have a gentleman that likes a very strong dollar at the Fed.”

“I want a strong dollar, but I want a dollar that’s great for our country – not a dollar that is so strong that it is prohibitive for us to be dealing with other nations,” the President added.

The economy was a key part of Trump’s campaign political platform, and the Fed and its chairman, Jerome Powell, have continuously been attacked, particularly on the matter of interest rate hikes.

The U.S. central bank raised interest rates four times last year but has recently said it will be “patient” before taking further steps to tighten monetary policy.

Trump’s comments on the strength of the dollar are based on the fact that when a nation’s currency is weak, it generally means exports from that country are more competitive. 

However, Powell has said he will not be influenced by political pressure. In early January, he gave a clear indication of how he viewed the Fed’s independence by saying he wouldn’t resign if asked to do so by the President. It had previously been reported that Trump had spoken to his advisers about the feasibility of firing Powell if the Fed increased rates once more.

As much as $50 billion a month havs been cut from the Fed’s $4 trillion balance sheet by measures that investors claim have been tightening financial conditions.