Tape Bomb! Trump Prefers “Low Interest Rates,” Says “Dollar Too Strong”

Aaaand there’s a tape bomb, folks…

  • TRUMP TELLS WSJ HE ‘LIKES’ & ‘RESPECTS’ FED CHAIR YELLEN: CNBC
  • TRUMP TELLS WSJ UNDECIDED ON RE-NOMINATING YELLEN: CNBC
  • TRUMP TELLS WSJ U.S. DOLLAR ‘GETTING TOO STRONG’: CNBC
  • TRUMP SAYS HE LIKES LOW-INTEREST RATE POLICY: WSJ
  • TRUMP TELLS WSJ U.S. DOLLAR ’GETTING TOO STRONG’: CNBC
  • TRUMP SAYS WON’T LABEL CHINA CURRENCY MANIPULATOR: WSJ

tapebomb

The dollar drops to a fresh low for the session, losing 0.43%, 10Y yield falls to 2.257, lowest since November 17. 10Y futures volumes surged on the move, with nearly 25k contracts trading over 1 minute at 3:18pm ET.

From WSJ

President Donald Trump said Wednesday the U.S. dollar “is getting too strong” and he would prefer the Federal Reserve keep interest rates low.

Mr. Trump, in an interview with The Wall Street Journal, also said his administration won’t label China a currency manipulator in a report due this week.

He left open the possibility of renominating Federal Reserve Chairwoman Janet Yellen once her tenure is up next year, a shift from his position during the campaign that he would “most likely” not appoint her to another term.

“I do like a low-interest rate policy, I must be honest with you,” Mr. Trump said at the White House, when asked about Ms. Yellen.

“I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me. But that’s hurting—that will hurt ultimately,” he added. “Look, there’s some very good things about a strong dollar, but usually speaking the best thing about it is that it sounds good.”

He continued, “It’s very, very hard to compete when you have a strong dollar and other countries are devaluing their currency.”

This would be the same Donald Trump who just nine months ago said this:

Fed Chair Janet Yellen and central bank policymakers are very political, and Yellen should be “ashamed” of what she’s doing to the country

By keeping interest rates low, the Fed has created a “false stock market”

It would appear that Trump now has one more thing in common with Turkey’s dictator Erdogan.

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2 thoughts on “Tape Bomb! Trump Prefers “Low Interest Rates,” Says “Dollar Too Strong”

  1. I’m beginning to like Trump as Prez. Every time he opens his fat, ignorant pie-hole and utters something idiotic, threatening, or clueless, gold goes up $15/oz.

    Since almost everything he says is either idiotic, threatening, or clueless, and since I have a good chunk of my personal wealth invested in physical gold, this otherwise dreadful Trump situation is developing quite nicely.

    Unless the planet gets incinerated, of course.

  2. Pingback: “Coiled Springs,” Trump the Rates Strategist and “the Elephant in the Room” – Biiwii.com

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