Contributor| Telegraph Local
Games of trade often go this way. The supply chain withers and production stills. Global growth appears to be on the decline in 2019. Citing Reuters, US manufacturing took the nosedive to a 10-year low as trade tensions increase this September.
Citing the Hill, President Trump blames the Fed for this industrial downturn as production withers on the Global vine. The Hill reports that Trump had choice words to say for his cherry-picked Federal Reserve Chief as the decline became evident. This was not the first time Trump accused Jerome Powell of standing as a roadblock to manufacturers via artificial inflation of the US dollar value.
In follow up posts, President Trump has accused both Brazil and Argentina as quote “presiding over a massive devaluation of their currencies which is not good for our farmers…”. He did not elaborate with facts or statistics regarding how a devaluation of South American currency reflects on US farmers. He merely followed up with a statement that he would immediately restore steel and aluminum imports tariffs to those countries.
He also went on to speak out against the Federal Reserve, stating that it should act so that countries quote “no longer take advantage of our strong dollar by further devaluing their currencies. This makes it very hard for our manufacturers and farmers to fairly export their goods. Lower rates and loosen_Fed!”
President Trump did not elaborate precisely which countries are devaluing their currencies or how this specifically impacts the manufacturing sector of the United States. Without a direct presentation of figures, it is difficult to gauge how the President reached this conclusion.
President Trump also lauded the marketplace increase surrounding tariff policy changes. He made an emphasis on the market percentage growth and accused China of targeting US farmers.
President Trump has stated that the US markets are increasing, but he did not much elaborate as to which industry sectors have been made better for tariffing.
Jerome Powell does not appear terribly concerned about the President’s critique of dollar valuation. It was announced on November 20, 2019, that the Fed is working on a digital currency for the US government, citing Markets Insider. This currency will be available to businesses and households. It may be a play to stimulate the marketplace and provide an alternative for the foreign dollar devaluation that Trump complains of, as many nations also provide their public with digital currency options to date.
The cryptocurrency development announcement came after Reps. French Hill and Bill Foster initially made statements that the central bank should consider it to increase US competition, in September, also citing Markets Insider.
Citing the Japan Times, Jerome Powell also appears to be focusing more on low-income homes. He called on the Fed to consider this when setting interest rates policies. J.W.Mason, a professor from John Jay College spoke with Japan Times, as well. He is quoted stating, “ It’s not just about the whole economy, it’s about who’s benefiting.”
The big and the little picture are difficult to gauge in their entirety. Are Trump’s numbers correct and has the economy benefited from tariffing? Will we see results from his economic policies that will reflect on all Americans? Is the dollar value rigged and will foreign nations’ policies adversely impact our own?
Nothing is certain but this: the American people must find a way to work together both home and abroad to ensure peace and progress. We cannot do this by accusing foreign neighbors. We also cannot do this from increased tariffs or by the generation of digital currencies for competition. It must come from real and lasting progress in our production.