Adding to his previous attacks on the US Federal Reserve’s (Fed) monetary policies, the United States (US) President Donald Trump pushed further for lower interest rates as he anticipates the US dollar (USD) is very strong.
Key quotes
“The Fed should lower rates (there is almost no inflation) and loosen, making us competitive with other nations, and manufacturing will SOAR! Dollar is very strong relative to others.”
FX implications
While the said comment fails to provide any immediate market direction, US President Trump’s strong push for further rate cuts amid recently downbeat data can have negative impact on the USD. The news could also be considered as a risk-negative catalyst.
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