Donald Trump will attack the Federal Reserve

Donald Trump has already expressed concern about the rise in interest rates in the United States. We believe he may attack the Federal Reserve far more brutally, at least orally, because: The monetary policy normalisation that the Federal Reserve wants to conduct runs counter to Trump’s determination to stimulate demand, which can be seen, for example, in his budgetary choices; The depreciation of the RMB and the fact that the euro zone keeps its interest rates at zero strengthen Trump’s conviction that China and the euro zone are manipulat ing their exchange rates. When financial markets realise that Trump can attack the Federal Reserve, and, at least orally, threaten its independence, the dollar’s exchange rate will probably deprec i ate sharply.