Trump Says ‘Devalued’ Currencies Put US at a Disadvantage and the Fed Doesn’t Have a ‘Clue’

(CNBC) – President Donald Trump said Tuesday the U.S. is at a disadvantage compared to other major currencies like the euro as other central banks keep interest rates low while the Federal Reserve’s rates are higher by comparison.

“The Euro and other currencies are devalued against the dollar, putting the U.S. at a big disadvantage,” Trump tweeted, adding the Fed doesn’t have “a clue.”

Trump also said in a separate tweet the U.S. has low inflation, calling it “a beautiful thing.”

The dollar fell slightly against the euro following Trump’s tweets, but remained little changed.

Trump has repeatedly gone after the Fed for what he considers to be tight monetary policy. The Fed hiked rates four times in 2018.

In December, after the central bank raised rates for the last time last year, Trump eviscerated the Fed. Trump called the Fed “the only problem our economy has” in a tweet, noting they “don’t have a feel for the Market.”

Trump also told CNBC’s Joe Kernen on Monday that the Fed “made a big mistake: They raised interest rates far too fast. ” Meanwhile, China keeps devaluing its currency, Trump added. “Don’t forget: the head of the Fed in China is President Xi … he can do whatever he wants.”

But market expectations for lower rates have increased recently after the release of weakening economic data. The Labor Department’s jobs report for May showed employment growth of just 75,000, well below estimates. Meanwhile, manufacturing activity growth slowed last month to its slowest pace since October 2016.

The data, coupled with comments from Fed Chair Jerome Powell, led traders to price in a 78% chance of lower rates by July, according to the CME Group’s FedWatch tool. Powell said last week the Fed will “act as appropriate” to keep the current economic expansion going.