46. [3 marks; Ch11]Find a news article in Moodle, titled "Trump_ U.S. dollar 'is getting too strong' - News", and answer following questions.
- What does ex-President Trump mean by a "strong dollar"?
- Is there an economic connection between the president's desire for a weaker dollar and his desire that the Federal Reserve (Central Bank in USA) keep interest rates low? Briefly explain.
- Why would a strong dollar make it hard for US firms to compete in international markets?
ARTICLE:
4/5/2021 Trump: U.S. dollar 'is getting too strong' - News . The Florida Times-Union - Jacksonville, FL 4/5/2021 Trump: U.S. dollar 'is getting too strong' - News - The Florida Times-Union -J onville, FL But in Wednesday's published interview with the Journal, Trump said he had jacksonville.com changed his mind because he now believes that China hasn't been manipulating its currency for months and because labeling Beijing a manipulator might jeopardize his talks with the Chinese on confronting the threat of North Korea. Trump: U.S. dollar 'is getting too strong' "They're not currency manipulators," Trump said. By Associated Press Posted Apr 12, 2017 at 7:14 PM On the dollar's overall value against major trading partners, Trump said: "I think WASHINGTON - Backing away from a campaign pledge, President Donald our dollar is getting too strong, and partially that's my fault because people have Trump said Wednesday that his administration won't label China a currency confidence in me. But that's hurting - that will hurt ultimately." manipulator in a report due this week, though he does think the U.S. dollar "is getting too strong." "It's very, very hard to compete when you have a strong dollar and other countries are devaluing their currency," the president said. Trump also said in an interview at the White House with The Wall Street Journal that he would prefer that the Federal Reserve keep interest rates The dollar began rising in value in mid-2014, a trend that has exerted a drag on relatively low. U.S. exports. The president also left open the possibility of re-nominating Janet Yellen for a Trump was highly critical of Yellen during the fall campaign, accusing her of second four-year term as Fed chair. That would mark another shift from his keeping borrowing rates low to help Democrats. campaign position that he would likely replace Yellen when her term as chair ends in February next year. But asked during the Journal interview whether Yellen would be "toast" when her term ends next year, Trump said, No. not toast." In the interview, Trump said, "I do like a low-interest rate policy, I must be honest with you." "I like here, I respect her," Trump said, noting that the two have met since he took office for an Oval Office discussion. The decision not to label China a currency manipulator represents one of the sharpest reversals of Trump's brief presidency. Trump began to bash China in Treasury Secretary Steven Mnuchin, who sat in on part of the Journal interview, the 2015 speech that began his campaign, saying Beijing kept its currency said Trump was "very close" to nominating a Fed vice chairman to oversee bank artificially low to give its manufacturers an unfair advantage in global trade. supervision and filling another seat that will go to a community banker. A weaker Chinese currency, relative to the dollar for example, makes Chinese "We think it is very important," to have a community banker on the Fed board, goods more affordable for American consumers and U.S. goods more expensive Mnuchin said. in China. With the departure last week of Daniel Tarullo, a Fed board member, Trump "China is killing us," Trump had complained on the campaign trail. "They're now has the chance to fill three of the seven seats of the board. Two seats have devaluing their currency to a level that you wouldn't believe. It makes it been vacant for over a year because the Republican-led Senate had refused to impossible for our companies to compete." take up the two nominees during Barack Obama's presidency. As a candidate, Trump pledged to instruct his Treasury secretary to label China a currency manipulator immediately after he took office. http::Wwww.jacksonville.comew getting-too-strong 1/2 https://www.jacks 2/2
