Trump accuses Europe of deliberately weakening the euro against the dollar to hurt the U.S. economy and turns up heat on Federal Reserve to cut interest rates
- President Donald Trump slammed the president of the European Central Bank for hinting at a cut in interest rates
- He complained the move put the U.S. at a competitive disadvantage
- His complaint comes as he prepares to formally launch his re-election bid and as the Federal Reserve Board is set to meet to discuss interest rates
- Trump has pushed for an interest rate cut in U.S. to boost the economy
- The president sees a strong economy as a key to his re-election
President Donald Trump slammed the president of the European Central Bank Tuesday morning for hinting at a cut in interest rates, a move the president complained hurt the dollar and put the U.S. at a competitive disadvantage.
The economy was on the president’s mind as he prepares to formally launch his re-election bid in Florida this evening and as the Federal Reserve Board is set to meet to discuss an interest rate cut for the United States.
The president has pushed the Fed to cut interest rates in order to boost the U.S. economy as he sees strong economic numbers as a key to his re-election.
President Donald Trump slammed the president of the European Central Bank for suggesting a cut in interest rates
Trump tweeted in fury after European Central Bank President Mario Draghi signaled his bank could cut interest rates or expand its bond-buying program, which promptly boosted both the European stock market and the Euro.
The president complained the move put the U.S. at a disadvantage.
‘Mario Draghi just announced more stimulus could come, which immediately dropped the Euro against the Dollar, making it unfairly easier for them to compete against the USA. They have been getting away with this for years, along with China and others,’ Trump wrote.
And he noted European markets – including the German Stock Exchange – got a benefit from Draghi’s insinuation.
‘European Markets rose on comments (unfair to U.S.) made today by Mario D!,’ he said.
‘German DAX way up due to stimulus remarks from Mario Draghi. Very unfair to the United States!,’ he added.
The president’s complaint against the European Central Bank echoed complaints he’s made about China and Mexico – two countries he’s threatened to get in trade wars with because of his belief the U.S. is at a competitive disadvantage with them.
Draghi shrugged off the president’s allegation of currency manipulation.
‘We have our remit. We have our mandate. Our mandate is price stability’ or inflation just below two percent, Draghi told a central banking conference in Sintra, Portugal.
‘We are ready to use all the instruments that are necessary to fulfil this mandate, and we don’t target the exchange rate,’ he said.
President Trump often brags about U.S. economic performance and argues no other president but himself could keep the economy strong.
‘The Trump Economy is setting records, and has a long way up to go,’ he wrote Saturday on Twitter. ‘However, if anyone but me takes over in 2020 (I know the competition very well), there will be a Market Crash the likes of which has not been seen before! KEEP AMERICA GREAT.’
And he’s lashed out at people and institutions he sees putting the U.S. economy in danger – including his own Federal Reserve chairman.
The Federal Reserve is meeting Tuesday and Wednesday and the president has made it clear he wants them to cut interest rates in order to boost economic growth.
Fed Chairman Jerome Powell, who Trump has complained loudly and publicly about, will have a news conference Wednesday that Wall Street will closely monitor for any signs of a coming rate cut.
Trump complained the move by European Central Bank President Mario Draghi would put the U.S. at a competitive disadvantage
Federal Reserve Chairman Jerome Powell will have a press conference Wednesday that Wall Street will monitor closely for news of an interest rate cut
Trump told ABC News last week that the U.S. market would be stronger ‘if we had a different person in the Federal Reserve who wouldn’t have raised interest rates so much.’
The Federal Reserve, which raises or lowers interest rates to slow down or stimulate the economy, is an independent agency that needs no presidential or congressional approval to raise or lower the rates.
Asked if he thought his comments would put Powell in a box, Trump replied: ‘Yes, I do. But I’m gonna do it anyway because, I’ve waited long enough.’
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