Financial safety

Trump is Causing the Chinese Currency Drop He Decries - Expert

In an interview with CNBC last week, Trump said that a strong dollar "puts us [the US] at a disadvantage," adding that "Chinese currency is dropping like a rock." 

The US president also noted that he is not excited by ongoing interest rate hikes by the Federal Reserve, but he allows the American central bank to do what it thinks is most appropriate.

"I'm not thrilled," Trump told CNBC. "Because we go up and every time you go up they want to raise rates again… I am not happy about it. But at the same time, I'm letting them do what they feel is best."

"The Chinese currency is devaluing because the American currency is rapidly appreciating. Why is the dollar rising? Because US interest rates are rising. Why are US interest rates rising? For the Federal Reserve to fund Trump's trillion dollar annual deficits. Why do we have annual deficits? Because of Trump's $5 trillion dollar tax cuts. So, Trump is causing devaluation of the Chinese yuan," Rasmus said.