United States President Donald Trump has pressured the Federal Reserve to weaken the U.S. dollar in an effort to compete with other nations who are making similar moves, attesting that their actions are hurting American citizens.
However, critics have ridiculed the President’s actions, worrying that this move could ultimately hurt GDP growth in the future, potentially resulting in tensions with other nations.
Recently, Trump has called out other countries, saying that “China and Europe playing big currency manipulation game and pumping money into their system in order to compete with USA. We should MATCH, or continue being the dummies who sit back and politely watch as other countries continue to play their games – as they have for many years!”
Politicians on either side of the aisle have contemplated these moves, but issues arise in regard to whether the Federal Reserve would cooperate as well as any potential consequences or backfiring of currency valuation.
Questions remain as to how or if the Fed will get involved, and how ramifications from other countries may emerge concerning potential trade tensions in the near future.