Trump Fed critique sends dollar lower
Wall Street Journal Global Economics Editor Jon Hilsenrath on President Trump calling out the Federal Reserve for raising interest rates too quickly.
President Trump on Friday took his second swipe in two days at the Federal Reserve’s interest rate hikes, alleging the central bank is taking away the country’s competitive advantage, which sent the U.S. dollar lower.
After he posted the tweet, the U.S. Dollar Index fell slightly.
In response to the president's tweet, St. Louis Federal Reserve Bank President James Bullard said on Friday that regardless of who comments, the Fed is committed to its two main objectives: keeping inflation low and stable and obtaining maximum employment.
On Thursday, the president sent out a similar message about the Fed, saying during an interview with CNBC that he was not pleased that the central bank kept raising rates. That caused the Dollar Index to turn negative when compared to other main currencies.
The Federal Reserve has raised interest rates seven times since 2015. It is expected to raise the benchmark interest rate two more times this year.