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Posted: July 3, 2019
Category: NATIONAL HEADLINES
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Trump Says US Should Join "Great Currency Manipulation Game" By Devaluing Dollar


President Trump has never been a fan of the strong dollar. And after beating around the bush for months by demanding a 50 bp rate cut and more QE from the Fed, it seems the president is now explicitly calling on the US to artificially weaken the greenback by any means necessary.

In a tweet, Trump blasted China and Europe for playing a 'big currency manipulation game' and recommended that the US "MATCH" or risk being "the dummies who sit back and politely watch as other countries continue to play their games."

Notably, the tweet calling for even more easing followed Trump's latest tweet celebrating new market highs.

Trump's warning also comes less than two weeks after Bank of America warned that direct intervention to weaken the dollar would be possible in the not-too-distant future.

According to tradition, the dollar and its value have long been the exclusive purview of the Treasury Department. But Trump has never been one to unquestioningly adhere to precedent. And back in May, the Treasury Department declined to name any country to its list of currency manipulators, though it added some to a 'watch list'.

Although the Fed and most central banks insist that they don't explicitly target the exchange rate, most observers know this isn't exactly true.

And for everybody who bought the dip in gold the other day...well done.





via Zero Hedge https://ift.tt/2RSqEeY

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