Donald Trump escalated economic global tensions on Friday, lashing out a range of targets that included the European Union, the Federal Reserve and China, indicating that he is prepared to raise tariffs on Chinese imports from $34bn to cover the entire $505bn of Chinese imports.
"Now I'm just saying the same thing that I would have said as a private citizen", Trump said.
'Because we go up and every time you go up they want to raise rates again. "If a decision is a close call, then the appearance of kowtowing to the president may bias them toward raising rates".
A White House spokeswoman, Lindsay Walters, told Business Insider that Trump respected the independence of the Fed. Interest rates are seen as the domain of the central bank, while the currency is regarded as the responsibility of United States treasury officials. I don't really - I am not happy about it.
It's always been speculated that the taboo of commenting on US monetary policy could change under Trump, who slammed the Fed during his election campaign and has demonstrated repeatedly his willingness to flout the conventions and sensibilities of establishment Washington. "I couldn't care less what they say, because my views haven't changed". So the Fed's rate hikes have lit a fire under the USA dollar, something which tends to widen the country's trade deficit as foreign countries with weaker currencies become much cheaper to import from.More news: Bristol Palin Joins Teen Mom!
"And it is worth pondering whether this is a President who is going to break with 25-30 years of tradition in not interfering in Fed policy deliberations going forward".
The Fed slashed short-term rates to near zero in the wake of the 2008 financial crisis.
In February, Jerome Powell, Trump's hand-picked choice, became Fed chairperson.
China imports far less from the USA, buying about US$130 billion in American goods previous year, so it doesn't have as much to leverage with tariffs, but it could use other measures to hit trade such as tightening regulatory oversight.
Trump's comments that China and the European Union are manipulating currencies contradict a Treasury Department semi-annual report released in April that refrained from naming any country a currency manipulator based on specific criteria.More news: Roseanne Barr screams about Valerie Jarrett in freakish YouTube video about scandal
Earlier this month, the United States imposed 25% tariffs on $34bn of Chinese imports.
The US, which is now doing well, should preserve its right to recover what was lost through such practices as illegal currency manipulation and trade deals that were not profitable for the US, the president tweeted.
"I'm not thrilled", he said in an interview on CNBC television.
Chinese Commerce Ministry spokesman Gao Feng last week called those accusations "groundless" and said that the US trade penalties contravene rules at the World Trade Organization. The central bank has always been seen as needing to operate free of political pressure from the White House or elsewhere to properly manage interest rate policy.More news: Bicyclist ignores stop arms, falls into drawbridge's gap