(Reuters) U.S. President Donald Trump says further Federal Reserve rate cuts would lower the value of the dollar and help the country’s trade position.
Even if the Fed cut deeper and faster than other central banks, “the global slowdown caused by the trade war is also boosting the dollar,” said John Doyle, vice president for dealing and trading at Monex Inc. in Washington. “Brexit, Hong Kong, North Korea, Turkey. There are lots of geopolitical concerns to boost the buck.”
“I do not think that is realistically possible,” to lower the dollar with Fed rate cuts, Doyle said. “As we have seen, three rate cuts and the dollar is still strong…I understand why President Trump doesn’t want a strong dollar. But if he is looking for a fix, perhaps he should turn inward and find an end to the trade war and the uncertainty surrounding it.”
The United States and China have been engaged in a tit-for-tat tariff war for more than year.
