87°F
weather icon Partly Cloudy

Trump wants ‘substantial’ rate cuts from Federal Reserve

Updated August 8, 2019 - 12:11 pm

WASHINGTON — President Donald Trump is not letting up on his attacks on the Federal Reserve, calling for “substantial” Fed rate cuts to allow the dollar to fall in value against foreign currencies.

In a series of tweets Thursday, Trump said, “As your president, one would think that I would be thrilled with our very strong dollar. I am not!”

Trump said that the Fed’s high level of interest rates in comparison to other countries was keeping the dollar too strong and making it more difficult for U.S. manufacturers to compete.

The Fed reduced its key policy rate by a quarter-point last week, but Trump is pushing for more interest rate cuts. Those cuts can lower the dollar’s value against other currencies, although other factors are also at play.

The dollar’s value is affected not only by relative interest rates in the United States compared to other countries but also factors such as economic growth rates and foreigners’ investment opportunities. At the moment, the U.S. economy, while slowing, is still performing better than most other major economies.

“With substantial Fed cuts (there is no inflation) and no quantitative tightening, the dollar will make it possible for our companies to win against any competition,” Trump tweeted.

Trump said that while the United States had the greatest companies in the world, “unfortunately the same cannot be said about our Federal Reserve. They have called it wrong at every step of the way, and we are still winning. Can you imagine what would happen if they actually called it right?”

Economists believe the possibility of future rate hikes has gone up sharply since Trump last week threatened to impose more tariffs on Chinese products by Sept. 1, widening a trade war between the world’s two biggest economies that has jolted financial markets.

Four former Fed leaders — Paul Volcker, Alan Greenspan, Ben Bernanke and Janet Yellen — said in an opinion piece published in the Wall Street Journal on Tuesday that the Fed’s political independence must be protected and called it wrong to threaten to remove or demote Fed leaders, as Trump has done.

Don't miss the big stories. Like us on Facebook.
Politics Videos
Bernie Sanders Unveils Affordable Housing Plan - Video
Bernie Sanders sits down with the Las Vegas Review-Journal to talk about his new affordable housing plan he unveiled at Plumbers & Pipefitters.
Jim Marchant talks gun control and Dreamers - Video
Republican Candidate for District 4 Jim Marchant talks about gun control and immigration policies. (Las Vegas Review-Journal)
Hurricanes, Gender, and Science in the Press
Imagine if the mainstream media’s current hurricane-sized obsession with scientific accuracy applied to gender.
Cory Booker on college tuition and minimum wage
Cory Booker talks on the RJ Politics podcast about college debt, informing workers about their rights and livable wages.
Nevada Politics Today: Teacher raises - VIDEO
Jason Goudie, the chief financial officer for the Clark County School District, talks about teacher pay and raises. (Las Vegas Review-Journal)
Media's Double Standard On Incitement And Trump - Video
Over the weekend, an Elizabeth Warren-supporting socialist who opposed gun violence used a rifle to commit a mass murder in Dayton, Ohio. The media has downplayed that aspect of the tragedy.
Project Our Care Tour Kicks Off In Las Vegas
U.S. Rep. Dina Titus joined health care advocates and local residents as part of Protect Our Care’s nationwide bus tour kick off in Las Vegas on Monday, August 5, 2019. (Mat Luschek / Review-Journal)
Bernie Sanders talks about guns, response to El Paso shooting
Sen. Bernie Sanders spoke about his response and continued policy ideas about guns and gun control to the Review-Journal after a panel of other topics. (Rachel Aston/Las Vegas Review-Journal)
Pete Buttigieg On Gun Control And Climate Change - Video
Pete Buttigieg talks about his campaign for the 2020 election and how Nevada is a vision of what the future can be.
Beto O'Rourke speaks in Las Vegas
Presidential candidate Beto O'Rourke spoke to supporters at the East Las Vegas Community Center in Las Vegas, Thursday, Aug. 2, 2019. (Las Vegas Review-Journal)
Former Nevada Senate leader Kelvin Atkinson sentenced to prison
Former Nevada Senate Majority Leader Kelvin Atkinson, who pleaded guilty to misusing campaign funds, was sentenced to 27 months in prison on Thursday, July 18, 2019. (Mat Luschek/Las Vegas Review-Journal)
Trumps Strength is also a Weakness - Video
One of Donald Trump’s greatest strengths — his ability to shape national narratives — is also a great weakness.
Tax the Rich Bus Tour makes a stop in Las Vegas - Video
The Tax the Rich Bus has stopped in Las Vegas as part of its summer tour. (Las Vegas Review-Journal)
Assemblywoman Daniele Monroe-Moreno hosts BBQ - Video
Assembly Woman Daniele Monroe-Moreno hosts BBQ to bring the community together to hear about the candidates up for election and for people to gather and have fun.
Democrat Virtual Caucus - Video
Elizabeth Warren visits Las Vegas
Senator Elizabeth Warren made a campaign stop at the East Las Vegas Community Center on Tuesday July 2, 2019. (Mat Luschek / Review-Journal)
Aaron Ford Speaks About Bill AB431
AB431 is a bill sponsored by Nevada Assembly Speaker Jason Frierson to restore the right to vote for formerly incarcerated individuals. Attorney General Aaron Ford spoke at the AM&E Church in North Las Vegas about the bill, on Monday, July 1, 2019. (Mat Luschek/Las Vegas Review-Journal)
THE LATEST
Arab lawmakers in Israel endorse Gantz for prime minister

It will be up to Israeli President Reuven Rivlin to decide which candidate should be given the chance to form a coalition government and serve as prime minister.

Iran asks West to leave Persian Gulf as tensions heightened

TEHRAN, Iran — Iran’s president called Sunday on Western powers to leave the security of the Persian Gulf to regional nations led by Tehran, criticizing a new U.S.-led coalition patrolling the region’s waterways as nationwide parades showcased the Islamic Republic’s military arsenal.

Trump says China trade deal unnecessary before election

The world’s two largest economies have been locked in a high-stakes duel marked by Trump’s escalating penalties on Chinese goods and Beijing’s retaliatory tariffs.

UAW strike puts Trump, GOP in political bind in key states

Led by President Donald Trump, GOP officials have largely avoided taking sides in the strike that threatens to upend the economy in Michigan.

Commissioners want Clark County to fight climate change

Clark County Commissioner Justin Jones outlined steps this week he’d like to take to fight climate change, including hiring a sustainability director and adopting an action plan similar to the city of Reno.