The Fed Is Learning What Being Donald Trump's Ex-Girlfriend Feels Like

  • The Fed Is Learning What Being Donald Trump's Ex-Girlfriend Feels Like

The Fed Is Learning What Being Donald Trump's Ex-Girlfriend Feels Like

China imports far less from the USA, buying about US$130 billion in American goods a year ago, so it doesn't have as much to leverage with tariffs, but it could use other measures to hit trade such as tightening regulatory oversight.

When Washington announced it was to impose tariffs on US$50 billion worth of Chinese products on June 15, China's Ministry of Commerce immediately issued a statement, at 1:30am local time that Saturday, announcing its retaliatory measures, with a detailed list of U.S. products that Beijing would target for additional import duties.

Around $505 billion of Chinese goods came into the United States in 2017, leading to a trade deficit of almost $376 billion, USA government data shows. So how else would China be able to retaliate? If the last one sounds far-fetched, it's important to remember the truism "free trade stops wars"-that is, you're less likely to attack another country if that country is also your customer".

Beijing is targeting sectors, like agriculture, that could harm Trump politically at home, though he said in the CNBC interview that he is seeking to do only what is fair.

Mr. Trump's economic policies, including the biggest tax cut in USA history, have fueled a strong economic expansion and record low unemployment.

It's true that the renminbi has been sliding in value against the U.S. dollar to levels last seen a year ago.

With trade tensions rising, so is the pushback in the US from private business that see potentially devastating ramifications, not only from China, but from Europe, Canada, and other countries in Asia.

'So somebody would say, 'Oh, maybe you shouldn't say that as president.' I couldn't care less what they say because my views haven't changed, ' he told CNBC. Look, I'm not doing this for politics. On Thursday, automakers and vehicle-making nations such as Mexico criticized the administration's study into whether auto imports pose a risk to national security, which could lead to tariffs.

Presidents have historically avoided criticizing the Fed, which is created to be independent from political interference.

The harsh comments took fresh aim at pillars of the worldwide economic system and underscored Trump's break with long-established norms by again openly rebuking the Federal Reserve for raising interest rates.

The dollar index turned negative following the release of Trump's remarks, which were excerpted from a longer interview due to air Friday morning.

He said the Fed's course of tightening monetary policy now "hurts all that we have done".

Trump's comments come as the world's two biggest economies are in a deepening impasse over allegations of unfair trade.

After the interview, Trump reiterated criticism of the Federal Reserve's planned interest-rate hikes, posting on Twitter that the tightening policy would diminish any US trade advantage and exacerbate losses from "BAD trade deals".

The Fed began raising interest rates from emergency levels in 2015, under Powell's predecessor Janet Yellen.

The Fed has hiked interest rates twice this year and could jack the rate up twice more before year's end. Its rate hikes are meant to prevent the economy from overheating and igniting high inflation. He said he was "not happy" about recent rate hikes.