Trump Goes Dove Hunting
President Trump has taken issue with weakness in other currencies when compared to the dollar
World Economic Forum, Mario Draghi - World Economic Forum Annual Meeting 2012, CC BY-SA 2.0
• less than 3 min read
The White House has reportedly wrapped up an investigation into whether it’s legal to demote Fed Chair Jerome Powell...so what's next? Take aim at another central bank leader.
Yesterday, President Trump accused European Central Bank President Mario Draghi of currency manipulation after Draghi struck a dovish tone at the ECB’s annual symposium.
Driving the tweet: Draghi suggested the ECB would consider a rate cut or an expansion of its 2.6-trillion-euro quantitative easing stimulus program if inflation continues missing the mark. That news sank the euro about 0.5% against the dollar.
Background check: Since taking office, President Trump has taken issue with weakness in other currencies when compared to the dollar, arguing countries like China (and now perhaps the eurozone) devalue their currencies to make their exports more competitive.
Looking ahead...the Fed will announce its own decision on interest rates later today. President Trump has pressured Jerome Powell to cut rates (and weaken the greenback), which could be why the ECB’s weighing a cut of its own.
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