CNBC: Dollar Gains Wiped Out and Treasury Yields Lower as Trump Criticizes Fed

Article by Patti Domm on CNBC Financial

The dollar slipped and Treasury yields edged lower after President Donald Trump said he disagreed with Fed policy on interest rates and objected to a strong dollar.

The dollar index was lower on the day, erasing a gain that had taken it to a fresh one-year high of 95.65 earlier Thursday. It was down about a half percent since Trump's comments were reported just after 1 p.m. Trump spoke to CNBC's Joe Kernen in an interview Thursday, a portion of which was broadcast.

The dollar has been rising this week following comments from Fed Chairman Jerome Powell that the economy was strong and the Fed would keep raising rates.

Trump, in the interview, called Powell a "very good man," but said he was not happy about interest rates going up. He also said he would not tell the Fed what to do.

“I’m not thrilled,” he told CNBC's Joe Kernen in an interview to air in full Friday starting at 6 am. “Because we go up and every time you go up they want to raise rates again. I don't really — I am not happy about it. But at the same time I’m letting them do what they feel is best.”

The president has criticized Federal Reserve policy in the past, as a candidate, and he has also voiced his concern about the strength of the dollar. His criticism of the Fed was largely aimed at Fed Chair Janet Yellen during the election.

Trump has commented on dollar strength in the past. One of those times was as president-elect, when he gave an interview to the Wall Street Journal just before the inauguration, saying the dollar was too strong. He also cited its strength against the Chinese Yuan as a concern, and at the time the Dollar moved lower.

The dollar earlier Thursday hit a one-year high against the Chinese Yuan, which has been falling amid worries about trade wars.

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