President Trump has never been a fan of the strong dollar. And after beating around the bush for months by demanding a 50 bp rate cut and more QE from the Fed, it seems the president is now explicitly calling on the US to artificially weaken the greenback by any means necessary.
In a tweet, Trump blasted China and Europe for playing a ‘big currency manipulation game’ and recommended that the US “MATCH” or risk being “the dummies who sit back and politely watch as other countries continue to play their games.”
China and Europe playing big currency manipulation game and pumping money into their system in order to compete with USA. We should MATCH, or continue being the dummies who sit back and politely watch as other countries continue to play their games – as they have for many years!
— Donald J. Trump (@realDonaldTrump) July 3, 2019
Notably, the tweet calling for even more easing followed Trump’s latest tweet celebrating new market highs.
S&P 500 hits new record high. Up 19% for the year. Congratulations!
— Donald J. Trump (@realDonaldTrump) July 3, 2019
Trump’s warning also comes less than two weeks after Bank of America warned that direct intervention to weaken the dollar would be possible in the not-too-distant future.
via ZeroHedge News https://ift.tt/2RSqEeY Tyler Durden