It should perhaps comes as no surprise that the president who once called himself a “low interest rate guy”, has finally laid into the Fed, and told CNBC’s Joe Kernan that he is “not thrilled” about rising rates, and wants a weaker dollar to offset the Chinese Yian which is “dropping like a rock.”
“I’m not thrilled,” he told Joe Kernen.
“Because we go up and every time you go up they want to raise rates again.
I don’t really…
I am not happy about it. But at the same time I’m letting them do what they feel is best.”
“But I don’t like all of this work that goes into doing what we’re doing.”
The statement, which could have comes from Turkey’s Erdogan on any given day, and which will immediately be seen as threatening the Fed’s independence, is sure to spark another meltdown, this time in the business media.
The president acknowledged that his comments are unusual but said he doesn’t care.
“Now I’m just saying the same thing that I would have said as a private citizen,” he said.
“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.”
“I don’t like all of this work that we’re putting into the economy and then I see rates going up,” he said.
Finally, hinting that trade war is about to become a full-blown currency war, Trump confirmed that he is well aware of what is going on China where the Yuan has been crashing relentlessly for the past month, and said that the Chinese currency is “dropping like a rock”… which it is:
Full interview below:
The result: the dollar predictably tumbled:
And stocks hiccuped…
And while Trump’s unorthodox comment is sure to set off a firestorm of complaints that Trump is seeking to eliminate the Fed’s independence, which of course it isn’t, because as Ben Bernanke’s former advisor once admitted, “A lot of people would be stunned to know the extent to which the Federal Reserve is privately owned”, here is an excerpt from the NYT, showing how previously US presidents handled Fed “independence”:
Read on ZH