Trump Federal Reserve interest rate attacks echo Nixon disaster


The short video in English with Chinese subtitles seems created to undermine support for the trade dispute from US farmers, key supporters of President Donald Trump, by highlighting the damage tariffs could have on American soybean exports.

"I'm not thrilled", he said in an interview, according to CNBC. "We have been ripped off by China for a long time".

"I am not happy about it", Trump said. "But at the same time I'm letting them do what they feel is best", he said. This article is strictly for informational purposes only.

The administration to date has slapped tariffs on $34 billion of Chinese goods in a trade dispute over what it calls the nation's predatory practices.

Goods already affected by Trump's tariffs against China include batteries, trains, and ball bearings, but they could extend to more consumer goods if further tariffs are imposed.

The growing share of worldwide trade under threat has raised the prospect the escalating trade war could harm the global economy by disrupting companies supply chains, pushing firms to hold off on investments, and making goods more expensive for consumers. The administration has also released a list of 10-per-cent tariffs on an additional US$200 billion of Chinese goods, which could take effect as early as next month.

White House economic adviser Larry Kudlow blamed Chinese President Xi Jinping for a lack of progress in bilateral trade talks, saying that lower-ranking officials want a deal.

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But most economists credit the Fed with engineering the economic recovery that began in 2010, and is now the second longest US economic expansion on record, by keeping interest rates at historically low levels and buying back US Treasury debt to inject liquidity into the market.

He pointed out that China and the European Union continued to grow and enjoy a lower currency, suggesting it was giving them an economic advantage. The Fed has been carefully and gradually raising rates over the past several years to keep inflation in check and to prevent the economy from overheating.

The president also noted he is doing what's right for the American people and reiterated his long-held belief about the state of USA trade with China.

But falling prices and lower sales would hurt US soybean farmers, it warns, pointing out that USA prices have fallen by 18 percent from May to early July, to their lowest this year.

"I'm just saying the same thing that I would have said as a private citizen", Trump said. In retaliation, China levied taxes on the same value of USA products. "In light of the European Union and others saying they are ready to respond to tariffs on cars, the stakes are rising fast".

Powell has downplayed concerns about Trump's politicizing the Fed.

In a bit of hyperbole, former Fed Gov. Frederic Mishkin, on CNBC, brought up the example of Turkey President Recep Tayyip Erdogan's recent move to take over interest-rate policy, including naming his son-in-law to oversee economic policy.