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The President Trump’s trade adviser is sanguine about the US economy. This economy is concrete as a rock, Peter Navarro, the white house trade adviser stated fox business. President Trump doesn’t a very good economy, he needs a great economy. The Navarro also stated that in order for the US economy to continue raising the Federal Reserve needs to keep lowering interest rates and congress desires to pass the United States Mexico-Canada trade agreement.
The Trump management has frequently attempted to pressure the Fed into slashing borrowing costs. On Wednesday, the President tweeted that the Fed is a larger problem for the US economy than China. We required to cut, not because our economy is weak, but it’s for the reason that we want to make a good economy great, Navarro stated on Fox business this morning. The Fed cannot have awareness rates which are on top of rest of the world and predicted good things to occur.
The interpretation comes on the back of series of rate cuts from Central bank around the world as terror of a slowing worldwide economy continue to rise. The Policymakers in Thailand, New zealand, and India shift to lowered borrowing cost on Wednesday leading worldwide stocks to rally from a sharp sell- off earlier in the week.
The Trump’s trade consultant also called out China for allegedly devaluing its currency over the past year to neutralize US tariffs. The China let the value of the Yuan trip below 7 Yuan per US dollar, a key psychosomatic level that encouraged the Trump administration to label the country a currency manipulator. We put on tariff at 10% and the Yuan goes down 12% Navarro stated. They are basically demanding to offset the impact of the tariffs. It also follow the Fed’s July slackening, which manifest the first time the Central bank lowered rates since the 2008 economic crisis.