Donald Trump has just reiterated to reporters (broadcast by “Fox”) his desire for negative interest rates. According to Trump, he thinks that Fed Chairman Powell has done a very good job lately. But when it comes to negative interest rates, he disagrees. Competitors like Germany have a clear advantage over the USA:
“If they’re going to have the advantage of negative rates, we should too. I feel strongly we should have negative rates”
But at the same time Trump wants a strong Dollar:
“It’s a great time to have a strong Dollar because the whole world — you know, we’re paying zero interest, right. That’s never happened either. We’re paying so low. Everybody wants to be in the Dollar because we kept it strong. I kept it strong”
Isn’t that actually a contradiction? Negative interest rates and a strong Dollar? Anyway, after Trump’s statements the Dollar became stronger, the Euro-Dollar slipped below the mark of 1.08.