President Trump Eyes an Additional $500B Worth of Tariffs on Chinese Goods

Trump Slams Interest Rate Hikes, Ignoring Hands-Off Tradition Toward Fed

Trump Breaks Precedent in Criticizing the Fed

"And China, their currency is dropping like a rock and our currency is going up and I have to tell you, it puts us at a disadvantage".

"We're down a tremendous amount", Trump said in an interview about trade imbalances with China on CNBC broadcast on Friday.

At the same time, Brazil and Argentina, another major soybean grower, have snapped up some of the cheap USA supplies for their domestic markets, according to Grant Kimberley from the Iowa Soybean Association. "I want them to do well", he said of China.

Fed spokeswoman Michelle Smith declined to comment.

But in decades past, the Fed was sometimes cajoled by the White House to keep a lid on interest rates.

Powell has said he believes the economy is strong enough for the Fed to continue normalizing rates, which were held at a historically low level during the recovery.

Interest rate hikes can suppress investment and the unemployment rate, two metrics Trump and Republicans touted frequently throughout his presidency. And in a statement, the White House noted that Trump was not intending to exert any such influence: "Of course the President respects the independence of the Fed". A loss of confidence from investors could lead to concerns of runaway inflation.

The president's latest interest rate and dollar-focused comments came a day after he first criticized the Fed's series of rate increases.

Nixon's attempts to influence provide a ideal example of why defenders of Fed independence are so fervent in their belief that politicians should not attempt to tamper with monetary policy, but there is also empirical evidence for independence as well.

"If the market starts to feel the Fed is being manipulated politically, that's a really bad story". And at others, the central bank was complicit in hewing to the administration's political preferences. Is a currency war coming?

The Fed is now chaired by Trump appointee Jerome Powell, whom Trump described as 'a very good man'.

"This puts Powell in the very awkward position", Valliere said, "of having to show the market that he's tough on inflation".

The president said that he would be making the same comments about the Fed if he were a private citizen, and dismissed possible criticism for breaking precedent by speaking about monetary policy.

"I'm not thrilled", Trump told the network in an interview excerpt aired yesterday.

Still, Wall Street took notice of the president's apparent desire for a weaker dollar. Rubin argued for that policy to be maintained in a New York Times op-ed piece past year when the White House was mulling the choice of Yellen's successor.

But current and former Fed officials didn't sound overly concerned about the commander-in-chief's perspective.

Shortly after taking office, Trump withdrew from the Trans-Pacific Partnership (TPP), which he said would steal millions of jobs from Americans, while the North American Free Trade Agreement (NAFTA), signed by Canada, Mexico, and the United States, is now being renegotiated.

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