President Donald Trump unleashed a barrage of tweets aimed at some of Thursday’s biggest news topics, including his displeasure with the Federal Reserve’s plan to continue raising interest rates, bad trade deals and growing concern about tariffs among U.S. farmers.
On Thursday, the Associated Press published a story on Trump’s dislike of the Federal Reserve’s plan to raise its benchmark interest rate two more times this year. Raising the interest rate helps battle inflation and keeps the economy from overheating, and the rate has already been raised twice this year.
A side effect of rising rates is payments on loans and credit cards increase, putting a damper on the president’s tax cuts.
“I don’t like all of this work that we’re putting into the economy and then I see rates going up,” Trump said in an interview with CNBC.
The Fed, which has always operated free of political pressure from the White House, raised its rate for the second time this year in June. Trump appointed Jerome Powell to run the Federal Reserve earlier this year, and he said he didn’t expect to face pressure from the president.
“We have a long tradition here of conducting policy in a particular way, and that way is independent of all political concerns,” Powell said. “We do our work in a strictly nonpolitical way, based on detailed analysis, which we put on the record transparently.”
Trump spokeswoman Lindsay Walters said the president “respects the independence of the Fed” after concerns about his CNBC comments arose, but he took to Twitter on Friday to further lament the rate increases while trade adversaries manipulate currencies to keep their rates low.
China, the European Union and others have been manipulating their currencies and interest rates lower, while the U.S. is raising rates while the dollars gets stronger and stronger with each passing day – taking away our big competitive edge. As usual, not a level playing field…
— Donald J. Trump (@realDonaldTrump) July 20, 2018
….The United States should not be penalized because we are doing so well. Tightening now hurts all that we have done. The U.S. should be allowed to recapture what was lost due to illegal currency manipulation and BAD Trade Deals. Debt coming due & we are raising rates – Really?
— Donald J. Trump (@realDonaldTrump) July 20, 2018
Trump also attempted to assuage growing concern among farmers being hit hard by reciprocal tariffs from China. The Trump administration imposed 25 percent tariffs on $34 billion worth of Chinese goods on July 6, and announced it is targeting another $200 billion worth of goods — and potentially as much as $500 billion if China counterpunches.
China retaliated with tariffs on U.S. soybean and pork products. Members of the American Soybean Association and the American Farm Bureau last week told lawmakers on Capitol Hill they are fed up with the tariffs and declining profits.
“A lot of people aren’t very optimistic, unfortunately,” said Michael Petefish, president of the Minnesota Soybean Growers Association. “They’re not sure of the end game, and that’s what everyone is trying to ascertain: What is the plan?”
Trump said farmers have seen declining profits for many years, blaming Canada for its dairy tariffs, but said they will eventually come out ahead if they remain steadfast.
Farmers have been on a downward trend for 15 years. The price of soybeans has fallen 50% since 5 years before the Election. A big reason is bad (terrible) Trade Deals with other countries. They put on massive Tariffs and Barriers. Canada charges 275% on Dairy. Farmers will WIN!
— Donald J. Trump (@realDonaldTrump) July 20, 2018
The Associated Press contributed to this story.