Donald Trump Claims the Federal Reserve is Penalizing the United States
President Donald Trump criticized the US Federal Reserve this past weekend, claiming the organization was penalizing the United States with higher interest rates. Trump’s criticism of the Federal Reserve has led some optimistic members of the crypto community to believe Trump is a bitcoiner.
Typically, presidents avoid discussing the US Federal Reserve. The organization is designed to be completely independent of all political concerns.
“Independence from presidential criticism has long been a hallmark of the Fed’s existence,” said Fed Chairman Jerome Powell in a statement. “[The Fed is] independent of all political concerns.”
Nevertheless, Trump insisted that his opinions have remained the same since he was a private citizen. He’s voicing these criticisms of the Fed today as a private citizen – not as the President.
“Now I’m just saying the same thing that I would have said as a private citizen. So somebody would say, ‘Oh, maybe you shouldn’t say that as president.’ I couldn’t care less what they say, because my views haven’t changed.”
Trump was responding to Jerome Powell’s comments above.
The US Federal Reserve just raised its benchmark interest rate to 2% in response to the growing US economy. Trump feels that interest rates should not rise just because the US economy is doing well. Typically, the US Federal Reserve keeps interest rates low to encourage spending during periods of economic downturn, then raises interest rates as the economy grows stronger.
Trump took to Twitter to address his concerns over the Fed’s decision to continue raising interest rates:
“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?”
The tweet was one of dozens issued by the president over a particularly busy weekend on Twitter. Just before the tweet above, Trump tweeted:
“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.”
Trump is referencing the fact that China manipulates the price of the Yuan. China artificially depresses the price of their national currency. The idea is that foreign goods – like cars made in Germany – are more expensive for the average Chinese person to buy, encouraging Chinese individuals and businesses to buy goods produced within their country.
Foreign businesses, meanwhile, can purchase Chinese-made goods at a similarly cheap price. In other words, a cheap domestic currency encourages an export-driven economy. That’s what Trump is referring to.
Trump only issued two tweets on the US Federal Reserve before launching into his usual Twitter tirade against Obama, Hilary Clinton, the fake news media, witch hunts, and black NFL players. Just hours after the tweet about the US Federal Reserve, for example, Trump retweeted a tweet from his own account featuring a clip from a Russian-state owned TV network playing an interview with Hilary Clinton. Trump capped his weekend with an all-caps threat promising to attack the country of Iran if they target the United States.
Is Trump a Bitcoin Hodler?
Trump’s attack on the US Federal Reserve has led some to question whether or not he’s a bitcoin hodler – seriously.
“Trump Says Fed Penalizing the United States, Is He a Bitcoiner?” was the headline at blockchain and crypto news website Trustnodes.com.
Trustnodes, in a slightly-unhinged article, describes how banks lent money at 0% and now want to make a profit, which is why Trump, described as a “Wharton” graduate who “probably knows how money is created,” is criticizing the organization:
“All that debt these bankers lended at nearly 0% now has to be paid back. If they can raise it to 2%, 5% or maybe even more, so receive more money by effectively doing nothing, then why on earth would they not?”, asks Trustnodes.
Despite mentioning Trump and bitcoin in the headline, the Trustnodes article provides no further explanation of the connection between Trump and cryptocurrencies.
To date, we have no information to suggest that Trump hodls any bitcoin. Surprisingly, he has never even tweeted about bitcoin.
….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
Will the Dems and Fake News ever learn? This is classic! pic.twitter.com/kSX3ROI4QG
— Donald J. Trump (@realDonaldTrump) July 19, 2018
To Iranian President Rouhani: NEVER, EVER THREATEN THE UNITED STATES AGAIN OR YOU WILL SUFFER CONSEQUENCES THE LIKES OF WHICH FEW THROUGHOUT HISTORY HAVE EVER SUFFERED BEFORE. WE ARE NO LONGER A COUNTRY THAT WILL STAND FOR YOUR DEMENTED WORDS OF VIOLENCE & DEATH. BE CAUTIOUS!
— Donald J. Trump (@realDonaldTrump) July 23, 2018