Trump in unusual criticism of USA central bank

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During a CNBC interview on Friday, President Donald Trump has said that he's "not happy" with the Federal Reserve raising interest rates, and that he thinks doing so undermines any work he does for the economy.

Speaking with CNBC Friday morning, Trump said "I'm ready to go to 500", referring to the $505.5 billion in Chinese imports the US took in a year ago. Steep tariffs already are in place on $34 billion in Chinese goods, and a second tranche of $16 billion in products is under review and could soon be added.

China exported goods worth $505.5bn to the USA in 2007, compared to $129.9bn of American goods sent to China.

The reaction to Trump's remarks in the financial markets was muted.

While not only stirring debate, the comments also had an immediate effect on markets with the dollar basket erasing a rally posted earlier in the day.

Global markets have remained generally calm in recent weeks and months despite the eruption of a full-blown U.S.

"I'm not thrilled", he said in an interview on the television network. European Union officials are readying a list of retaliatory tariffs that would be applied in response. The White House has also itemized $200 billion of additional Chinese imports that it said may be subject to tariffs. The yuan tumbled this week to its lowest value in a year, raising questions about whether Beijing was letting the currency weaken to insulate itself from American trade measures. "I really like President Xi a lot, but it was very unfair". Now, I'm just saying the same thing that I would have said as a private citizen.

"We're down a tremendous amount", Mr Trump said in an interview about trade imbalances with China on CNBC.

The chance inflation might accelerate has increased after the massive tax cut Trump championed a year ago, which has raised the USA debt and budget deficit.

China's central bank rate is now 4.35 per cent and the country hasn't cut its benchmark rate since 2015.

On Wall Street, the Dow Jones Industrial Average .DJI fell 6.38 points, or 0.03 percent, to 25,058.12, the S&P 500 .SPX lost 2.67 points, or 0.10 percent, to 2,801.82 and the Nasdaq Composite .IXIC dropped 5.10 points, or 0.07 percent, to 7,820.20. "That is between what is clearly a very good earnings and economic backdrop in the USA contrasted with the risk that trade continues to be a problem".

Trump has ordered the Commerce Department to investigate whether auto imports pose a threat to USA national security that would justify tariffs or other trade restrictions. Earlier this year, he used national security as a justification for taxing imported steel and aluminum.

China imports just under $130 billion in US products each year, according to the Census Bureau, which would seemingly put that country at a disadvantage in the dispute.

"Automobiles - that's the 800-pound gorilla", Brookings' Dollar said. "Tightening now hurts all that we've done".

The Fed has raised rates five times since Trump took office in January 2017 and has provisionally pencilled in two more increases for this year.