Day 902: Of course Trump is saying the exact opposite thing about interest rates he was saying six years ago
What he has criticized China for doing, he now wants to do too.
Six years ago, Donald Trump was critical about the Federal Reserve’s action. He perceived the Fed to be pumping the economy by keeping interest rates low. Low interest rates weaken a nation’s currency by reducing appreciation.
When Trump tweeted his criticisms, U.S. consumers were still uneasy and the recession wasn’t far in the rear-view mirror.
Fast forward six years, the economy has been roaring for a decade and Trump wants to do the exact opposite of what he warned about in his tweet. He’s trying to goose the economy for political reasons after his tax cuts did virtually nothing for long-term market outlook.
President Donald Trump has reportedly asked aides to find a way to weaken the U.S. dollar in an effort to boost the economy ahead of the 2020 presidential election.
The president also asked about the greenback while interviewing Federal Reserve Board nominees Judy Shelton and Christopher Waller, people familiar with the matter told Bloomberg News.
Those individuals also told Bloomberg that Trump’s chief economic advisor, Larry Kudlow, and Treasury Secretary Steven Mnuchin disapprove of the idea of government tampering to weaken the dollar. Traditionally, past administrations have always maintained publicly they were for a strong dollar because dollar assets like Treasurys are so widely held around the globe.
What Trump wants is hypocrisy of the highest order. Barack Obama didn’t beg the Fed to keep rates low. The independently-acting body did so to help stabilize the economy because they thought that was the best course of action for the long-term.
Not only did Trump criticize that action, he is now trying to strong-arm the Fed to do it so he can get reelected with an eye exclusively on the short-term. On top of that, intentionally weakening your own currency is exactly the type of action Trump has routinely lambasted China for.
902 days in, 560 to go
Follow us on Twitter at @TrumpTimer
