Washington: White House commercial adviser Peter Navarro said on Tuesday that the Federal Reserve should actively cut interest rates to better adapt to other economies.
Navarro accused the Federal Reserve of raising interest rates too quickly last year, even though it needed more than 25 basis points to reduce interest rates last week.
He said there is a “gap difference” between US interest rates. UU. And other countries, which has affected our work. Although Navarro also said “the economy is so stable,” the Fed raised the reference credit interest rate four times last year and reached a full mark. Everyone agrees with this. Everyone believes that interest rates should be lowered. “Navarro, commerce and uncompromising China said that raising interest rates would curb US exports by strengthening the dollar. At the same time, Beijing responded to U.S. tariffs and “It operated the currency intervening in the currency market,” said Navarro.
However, economists say that a weaker exchange rate is a common reaction to a negative impact on the country’s economy or exports, which may partly explain the decline in the renminbi.
However, the United States Treasury has taken unusual measures to name China currency manipulator, even if the Chinese government actively intervenes to keep the renminbi weak, it will not take action.
This week, China’s exchange rate broke the $ 7 psychological barrier and angered President Donald Trump.
Navarro said the direct response from the United States led China to change its course.