Donald Trump has said his management will not accuse China as a currency manipulator.
The US president also left open the option of again nominating Janet Yellen as the head of the Federal Reserve, despite having criticized her. Earlier, he had said that he will not nominate Janet Yellen again but in Wednesday’s interview he mentioned that he liked “low interest rate policy”. He made the statement days after having dialogue with China’s President Xi Jinping. China has been charges of suppressing the yuan to make its exports more competitive with US goods.
Before the US election, Mr Trump compared this to “raping” the US, and promised to label China a currency manipulator on his first day in office. That would have activated talks between the countries and potentially led to US sanctions – something experts warned would have prompted retaliation. But in an interview with the Wall Street Journal on Wednesday, Mr Trump said China has been trying to prevent further weakening and hence cannot be labeled as “currency manipulators” . He also said that the dollar is getting too strong, and partially that’s my fault because people have confidence in me.” He added that a strong dollar had benefits, but would ultimately hurt the US economy.