China Confused About Trump Currency Manipulation Charges

Lester Mason
April 18, 2018

"Russia and China are playing the Currency Devaluation game as the U.S. keeps raising interest rates".

White House spokeswoman Sarah Sanders later told reporters aboard Air Force One on a trip by the president to Miami that China is on a US Treasury Department watch list for being potentially labelled a currency manipulator.

President Donald Trump's accusations that China and Russian Federation are gaming their currencies were a "warning shot" about the consequences about devaluation, rather than part of a wish to achieve a weaker dollar, U.S. Treasury Secretary Steven Mnuchin said.

The tweet from Trump comes even though his administration has repeatedly refused to officially label China a currency manipulator.

Since Trump took office in January 2017, the dollar has weakened substantially against most currencies, including the Chinese yuan and, until the United States imposed sanctions on Russian Federation in the last few weeks, the ruble.

China on Tuesday said accusations by American President Donald Trump that Beijing allegedly devalued its currency contradicts a semi-annual report by the US Treasury Department. Higher US interest rates would generally increase the value of the dollar, making US exports more expensive.

It is not clear what Trump meant by calling the current situation "not acceptable".

After a flub in January when Mnuchin made off-the-cuff remarks that a weaker dollar had short-term benefits for the USA economy, he has consistently said that his dollar policy is not aimed at talking it down.

In the past three years, the Federal Reserve raised interest rate six times to a range between 1.5 percent and 1.75 percent, and says it expects to raise the rate two or three more times this year. Tomorrow, last day. Very importantly, next year, it's going to be a simple - for the most part, one page. "But it will be simple and easy to do." - event in Hialeah, Florida. The Trump tax overhaul does not introduce a system permitting everyone to file a one-page or so form. Trump previously had promised a card-size tax form but now appears to be backing off that claim by describing next year's form as "for the most part one page" that "may get a little bit bigger". They will also need to figure in the hit they could take from the capping of deductions for mortgage interest and state and local taxes. The idea of dropping a postcard-type paper with personal financial data into the mail seems old-school.

Other reports by Iphone Fresh

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