Thursday 20 June 2019

Trump wishes Fed would obey his commands

U.S. President Donald Trump
REUTERS/Kevin Lamarque
U.S. President Donald Trump REUTERS/Kevin Lamarque

Alister Bull

US President Donald Trump has renewed his attack on the Federal Reserve, complaining it doesn't "listen" to him and contrasting that lack of obedience with the control that China's leader wields over its central bank.

"The head of the Fed in China is President Xi," Mr Trump told CNBC television yesterday. "He can do whatever he wants. They devalue. They loosen" monetary policy to help offset the burden of tariffs, he said.

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The People's Bank of China lacks the political independence of counterparts like the Fed, meaning President Xi Jinping and his colleagues must approve major PBOC decisions.

Mr Trump's broadside comes a week before the Fed meets in Washington, when it's expected to discuss whether an interest rate cut is needed to help offset an economic slowdown caused by his trade war.

His latest assault on the Fed returned to his argument that it should aid his trade war with China, a sensitive topic among US allies who worry about monetary policy being used for foreign policy goals.

Bloomberg

Irish Independent

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