US intervention odds rise as yuan's plunge fuels Trump's fury

[Yo_Mama_Been_Loggin]

The risk of a U.S. move to weaken the dollar has climbed in the eyes of some analysts after the yuan’s plummet to a decade-low prompted fresh criticism from U.S. President Donald Trump.

The U.S. leader decried the yuan’s plunge below 7 per dollar as “currency manipulation” in a tweet Monday and indicated he’d like the Federal Reserve to act to counter the move. The Chinese currency’s tumble came days after Trump threatened to impose 10% tariffs on another $300 billion of Chinese imports.

Speculation is building among strategists that the yuan’s sharp drop could push the administration to intervene in currency markets. While White House economic adviser Larry Kudlow said Friday that there’s no plans for intervention, Trump has said he hasn’t ruled out measures to counter the dollar’s strength. If U.S. authorities do step in, it could sound the death knell of the strong-dollar policy that’s been in place since the 1990s.

“Given that President Trump is reportedly willing to take action without following the guidance of his advisers, it doesn’t seem like pushing such a policy through would be especially difficult,” said Shahab Jalinoos, global head of foreign-exchange trading strategy at Credit Suisse Group AG.

https://www.msn.com/en-us/money/markets/us-intervention-odds-rise-as-yuans-plunge-fuels-trumps-fury/ar-AAFmsVl?li=BBnbfcN

[coti]

1. They just cut interest rates for no reason, now they're going to start tossing more money

into the system. We've been due for serious inflation for a long, long time, and this is dangerous. They might just get what they're asking for, skyrocketing prices for everything.

[safeinOhio]

2. He goes with his gut...

Just look at his gut.