President Donald Trump renewed his criticism of the Federal Reserve and said the U.S. central bank's tight monetary policy was contributing to a strong dollar, (thus) hurting the United States' competitiveness.
At the annual Conservative Political Action Conference in Oxon Hill, Maryland, Trump said:” I want a strong dollar, but I want a dollar that's great for our country, not a dollar that is so strong that it is prohibitive for us to be dealing with other nations." A weaker currency generally makes a country's exports more competitive.
Trump has repeatedly criticized the Federal Reserve and its chairman, Jerome Powell for raising interest rates. He pinpoints that the current monetary policy threatens US economic growth. At the January meeting, the Fed maintained the target range for its benchmark interest rate at 2.25%-2.5% Representatives of the monetary policy stated that at the moment the Fed does not plan to raise interest rates. Besides, the Fed is likely to suspend the post-crisis reduction of its balance earlier than expected. Currently, the amount of assets on the Fed's balance sheet is about $4 trillion. Over a long period of time, the regulator has accumulated bonds in large quantities - almost near $4.5 trillion. Some of them were paid off.
