Trump bashes Fed chief Powell in interview with Reuters


Trump bashes Fed chief Powell in interview with Reuters

Investec economist Annabel Bishop said in a note that the Bank could strike a more hawkish tone during its scheduled meeting in September, meaning that it could flag potential increases in rates in future meetings, given the volatility in the rand. "This can only happen to Trump", the president reportedly joked.

A Chinese central bank official said on Tuesday that China had taken note of the USA comments on the yuan, and said the two sides should communicate on the issue. It has also penciled in three more rate hikes in 2019. The currency has declined against the USA dollar for 10 straight weeks. His administration is holding talks with Beijing this week but the president said that he does not expect a breakthrough.

The US Dollar has so far failed to react much to news that two of Donald Trump's advisers face jail.

The US dollar has strengthened this year by 5.35 per cent against the yuan, reversing most of its large drop against the Chinese currency in 2017.

The consumer price index (CPI) rose to its highest level in almost a year in July - 5.1%, up from 4.6% in June - into the upper end of the South African Reserve Bank's 3% to 6% target range.

Trump has made reducing US trade deficits a priority and the combination of rising interest rates and a strengthening dollar pose risks for export growth.

The president told Reuters on Monday that he wasn't "thrilled," this time singling out Federal Reserve Chairman Jerome Powell.

Fed officials left the benchmark lending rate unchanged earlier this month while upgrading their description of economic growth in their statement to "strong", compared to "solid" in June.

"We do our work in a strictly nonpolitical way, based on detailed analysis, which we put on the record transparently, and we don't take political considerations into account", Powell said in the interview.

The Fed, which released the readout from its July 31-Aug. Trump obviously should have been aware of all of this when he appointed Powell, so for him to express surprise or regret at the fact that his appointee is following a policy he has supported from the beginning and which he and the other members of the Board of Governors have adhered to since he took office.

"Am I happy with my choice?" "As he said he considers the Federal Reserve Board Chair Jerome Powell a very good man and that he is not interfering with Fed policy decisions".

The criticism comes after a private Republican fundraiser on Friday, during which Trump reportedly attacked Powell's interest-rate hikes.

President Trump is preparing to slap import duties on a further $200 billion of Chinese goods, meaning that his sanctions would cover almost half of imports from the country. "I'll let you know in seven years".



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