Trump wants stronger dollar as coronavirus economic rebound takes hold
Trump wants king dollar to accompany an economic recovery
President Trump says it's a good time to have a strong dollar now with low interest rates, even if it's tough for trade.
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President Trump expects to see the needle move on the economic rebound starting in the third quarter as more states reopen for business.
“I call it a transition to greatness. You’re going to have the third quarter….That’s a transition quarter. We’re going to do well in the fourth quarter, and I think next year, with all of the stimulus, all of the things we’ve done, I think we’re going to have one of the best economic years we’ve ever had,” Trump told FOX Business’ Maria Bartiromo.
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Already the government has injected about $3 trillion of stimulus into the economy with the possibility of more coming down the pike if needed, according to Treasury Secretary Steven Mnuchin.
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Trump also wants a stronger U.S. dollar to accompany the economic recovery.
“It’s a great time to have a strong dollar because the whole world -- you know, we’re paying zero interest, right. That’s never happened either. We’re paying so low. Everybody wants to be in the dollar because we kept it strong. I kept it strong” he said.
The dollar has advanced 3.67 percent vs. euro and is down 1.48 percent against the Japanese Yen, as tracked by the Dow Jones Market Data group.
While Trump celebrated interest rates at zero he is looking for a move even lower just like Germany and Japan.
“If they’re going to have the advantage of negative rates, we should too. I feel strongly we should have negative rates” he said speaking to reporters at the White House.
President Trump says other countries with negative rates are doing well so the United States should have that advantage too.
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America had a strong economy before the coronavirus wrecking ball came in and swiftly shuttered industries including brick-and-mortar retail, restaurants, airlines, and many others.
The unemployment rate, recently at a record low of 3.5 percent, jumped to 14.7 percent as of April with over 33 million people now out of work.
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Oil prices collapsed, turning negative, as demand evaporated for airline travel and Americans were ordered to work from home, curbing drivers.
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On Wednesday, Trump complimented the Federal Reserve for their actions to shore up the economy amid the pandemic. Earlier in the day Fed Chairman Powell warned that the U.S. remains at risk for a “prolonged recession” but said policymakers stand ready to lend more aid.
“At the Fed, we will continue to use our tools to their fullest until the crisis has passed and the economic recovery is well underway,” he said in a speech.