Trump ready to hit all Chinese imports with tariffs

Gladys Abbott
July 20, 2018

CNBC began broadcasting parts of the Trump interview Thursday, revealing also that he had broken with the presential practice of not commenting on the Federal Reserve's interest-rate decisions. "As usual, not a level playing field", Mr Trump said.

China's central bank is allowing its tightly controlled currency to drift lower against the dollar, a move that could help Chinese exporters cope with USA tariff hikes.

Trump has told reporters before that the USA could target all of China's imports.

Breaking with tradition to avoid criticizing the Fed, Trump told CNBC he's anxious that the central bank's policies will cancel out his efforts to speed up the economy. I don't necessarily agree with it because he's raising interest rates, I'm not saying I agree with it, and I don't necessarily agree with it, I must tell you I don't.

On Friday, the Axios news website reported that Kudlow had said Trump was "not going to let go" of the trade issue.

The Fed had no comment.

Mr. Powell argues that the economy is strong enough to handle higher rates after the rates were kept artificially low to help the recovery from the Great Recession of 2007.

The U.S. central bank last raised borrowing costs in June, and Fed Chair Jerome Powell on Wednesday repeated his oft-stated view that rates will keep climbing gradually.

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The Fed has raised interest rates five times since Trump took office in January 2017, with two of those coming this year under Chairman Jerome Powell, the president's pick to replace Janet Yellen. "In fact, an argument can be made that the President's comments may skew the Committee in a hawkish direction: if a decision is a close call then the appearance of kowtowing to the President may bias them toward raising rates".

He wants the growth to continue and anxious that interest rate hikes will rein in investments. "We have been ripped off by China for a long time", he said.

"The Fed should be independent but that independence does not mean that is an institution outside of the government of the United States", said Mark Grant, managing director at money managing firm B. Riley FBR Inc.

USA stock prices briefly pared losses after Trump's comments on interest rates. "Now I'm just saying the same thing that I would have said as a private citizen", he said.

Jay Powell is about to earn that Trump is like The Federal Reserve's controlling ex-boyfriend.

Trump regularly claims that his policies, especially tax cuts enacted by Congress last December, have created jobs and economic growth.

While it's been many years, the White House has also been known to exert other forms of pressure.

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