Trump lashes out at the Fed and suggests people want to travel to Europe because of 'devalued' currencies

FILE PHOTO: U.S. President Donald Trump talks to reporters as he departs for travel to Japan from the White House in Washington, U.S., May 24, 2019. REUTERS/Leah MillisU.S. President Trump departs for travel to Japan from the White House in WashingtonReuters

  • President Donald Trump lashed out at the Federal Reserve in a series of tweets Tuesday morning.
  • He said that currencies including the euro are devalued against the dollar and suggested that is why tourism abroad is strong.
  • Trump has repeatedly called on the independent central bank to ease monetary policy and attempted to fill its policymaking board with political allies.

President Donald Trump lashed out at the Federal Reserve in a series of tweets Tuesday morning, saying that currencies including the euro are devalued against the dollar and that interest rates should be lower.

Responding to a Bloomberg Opinion story on Twitter, Trump suggested the Fed's policies are hurting growth and contributing to a surge of tourism in Europe.

"This is because the Euro and other currencies are devalued against the dollar, putting the U.S. at a big disadvantage," he said. "The Fed Interest rate way too high, added to ridiculous quantitative tightening! They don't have a clue!"

The Bloomberg story Trump was referring to outlined how relatively low travel costs have encouraged travel to Europe. Higher interest rates encourage investment in a currency, increasing its value.

Trump has put an increasing amount of pressure on the Fed ahead of the 2020 elections, as global growth cools and his trade policies cast uncertainty on American businesses and consumers.

He has repeatedly called on the independent central bank to ease monetary policy and attempted to fill its policymaking board with political allies. In April, he said the Fed should return to quantitative easing, a financial-crisis-era policy that injected trillions of dollars into the economy.

Trump on Tuesday also praised below-target inflation levels, which have been a central challenge for Federal Open Market Committee officials as they set policy.

"The United States has VERY LOW INFLATION, a beautiful thing!" he said.

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The White House is said to be vetting Judy Shelton for a seat on the Fed board. She told us what she would bring to a central bank whose policies she has long criticized.

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