The American president Donald Trump is not happy with Mario Draghi. The President of the European Central Bank (ECB) spoke earlier on Tuesday about possible interest rate cuts and other additional stimulus measures for the European economy. With his comments, Draghi manipulated the value of the euro in Trump’s eyes.
Following the words of Draghi, the value of the euro fell against the dollar. In a tweet, Trump pointed out that this means unfair competition. The president states that the ECB, but also China and other economic power blocks have been manipulating the value of their currencies for years and getting away with it. Trump calls that unfair.
Draghi spoke at the annual forum of the central bank in Sintra, Portugal. As a result of his speech, earlier losses on the European stock exchanges were also turned into pluses.
Trump has not been pleased with the policy of the Federal Reserve in its own country either. Bloomberg news agency reports that Trump has investigated whether he could limit the power of president Jerome Powell of the central bank dome.
Powell, who was appointed by Trump himself, has repeatedly received unveiled criticism from Trump, an unusual move by a sitting US president. Trump even argued openly for Powell’s resignation. Around the time of those statements, he would have thought about the possibilities of taking Powell’s chairman’s hammer away.
The White House did not want to respond officially to “something that played months ago”. According to economic adviser Larry Kudlow, a step like putting Powell back into position is currently not an issue. The Fed says that from a legal point of view, a chairman can only be dismissed if there are compelling reasons.