Trump Moves From Trade War Toward Currency War
- President Donald Trump has already given the global economy trade wars. Now there are signs he may be gearing up for a currency war, too.
- With a series of tweets on Tuesday aimed at the European Central Bank and an announcement by Mario Draghi, its president, that he was prepared to cut interest rates further below zero in response to Europe’s slowing growth, Trump made a rare American presidential intervention into another economy’s monetary policy.
- “Mario Draghi just announced more stimulus could come, which immediately dropped the Euro against the Dollar, making it unfairly easier for them to compete against the USA. They have been getting away with this for years, along with China and others,’’ Trump stated.
- By targeting Draghi directly and responding in real time to an overseas central bankers’ policy pronouncement, Trump was dialing up the heat just as his own Federal Reserve was gathering in Washington to decide on rates in a decision expected Wednesday, June 19, 2019.