New data challenges Trump's economic narrative
Trump hits Fed over high interest rates: 'They don't have a clue!'
President Trump on Tuesday complained that the Federal Reserve doesn't "have a clue" amid a series of tweets defending his use of tariffs and alleging that multiple currencies have been devalued against the dollar.
Trump has long criticized the Fed over the central bank's decision to raise interest rates. He reiterated that point on Tuesday for the second consecutive day while sharing a Bloomberg opinion piece that argued the low cost of travel to Europe has led to an overabundance of tourists.
"This is because the Euro and other currencies are devalued against the dollar, putting the U.S. at a big disadvantage. The Fed Interest rate way too high, added to ridiculous quantitative tightening! They don't have a clue!" Trump tweeted.
The Fed has raised interest rates nine times since 2015 and seven times since President Trump took office in 2017 in a bid to prevent rampant inflation. Trump has repeatedly called on the bank to cut rates throughout 2019.
After Trump alleged the euro and other currencies are devalued against the dollar, he specifically accused China of devaluing its currency to try an offset the impact of U.S. tariffs.
In a series of three tweets apparently directed toward hosts on Fox Business Network, Trump offered a defense for his strategy of using tariffs to bring China and Mexico to the negotiating table.
"Maria, Dagan, Steve, Stuart V - When you are the big 'piggy bank' that other countries have been ripping off for years (to a level that is not to be believed), Tariffs are a great negotiating tool," Trump tweeted, likely referring to Maria Bartiromo, Dagen McDowell and Stuart Varney.
Trump had threatened to impose 5 percent tariffs on Mexican goods if the country did not take action to curb migration. The two sides reached a deal last week to avert the tariffs.
The president has constantly been selling the deal as a victory amid criticism that some components are actions Mexico had already planned on taking prior to the president's tariff threat.
Trump tweeted Tuesday that he's "very happy with the deal I made" and continued to tease an as yet unspecified aspect of the agreement.
"Biggest part of deal with Mexico has not yet been revealed!" Trump tweeted. "China is similar, except they devalue currency and subsidize companies to lessen effect of 25% Tariff. So far, little effect to consumer. Companies will relocate to U.S."
The U.S. and China have been engaged in a months-long trade war, with the world's two largest economies imposing tit-for-tat tariffs on each other's goods. Trump and Chinese President Xi Jinping are expected to meet later this month at the Group of 20 Summit in Japan.
If no deal is reached there, Trump has hinted he could impose tariffs on additional Chinese goods.