- US President Trump and the Federal Reserve are engaged in a political fude over the Fed’s monetary policy.
- Trump has said that the Fed has been calling it wrong for too long!
President Donald Trump tweeted in recent trade the following:
The Federal Reserve loves watching our manufacturers struggle with their exports to the benefit of other parts of the world. Has anyone looked at what almost all other countries are doing to take advantage of the good old USA? Our Fed has been calling it wrong for too long!
The trade war drama saga continues to heat up following the latest developments over the Friday tit for tat comments and announcements that sent US stocks over a cliff, but Trump is not about to back down to the US allies that have been trying to pressure him at the G7 summit in France, warning that the trade war is threatening the global economy.
Trump vs the Fed
Former New York Fed President Bill Dudley encouraged his one-time colleagues not to help Trump’s “disastrous path of trade war escalation.”
In a Bloomberg editorial, he wrote that the Fed try to influence the 2020 election by not cutting rates further. “After all, Trump’s reelection arguably presents a threat to the U.S. and global economy, to the Fed’s independence and its ability to achieve its employment and inflation objectives,” Dudley wrote.
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