These hikes are the ones responsible for the implosion of the Argentine peso and the Brazilian real in the last few weeks:
It should perhaps come as no surprise that the president who once called himself a “low interest rate guy”, has finally laid into the Fed, and during an interview with CNBC’s Joe Kernan, criticized the US central bank saying that he is “not thrilled” about rising rates, and would prefer a weaker dollar to offset the Chinese Yuan which is “dropping like a rock.”
Trump also said he’s concerned that the timing of the Fed’s rate hikes may be poor and the resulting strong dollar will put the U.S. at a “disadvantage” while the Fed’s counterparts like the European Central Bank and the Bank of Japan maintain loose monetary policy.
The statements, which could have comes from Turkey’s Erdogan on any given day, and which will immediately be seen as threatening the Fed’s independence, is sure to spark another meltdown, this time in the business media.
The president acknowledged that his comments are unusual but said he doesn’t care.