WASHINGTON – Backing away from a campaign pledge, President Donald Trump said Wednesday that his administration won’t label China a currency manipulator in a report due this week, though he does think the U.S. dollar “is getting too strong.”
Trump also said in an interview at the White House with The Wall Street Journal that he would prefer that the Federal Reserve keep interest rates relatively low.
The president also left open the possibility of re-nominating Janet Yellen for a second four-year term as Fed chair. That would mark another shift from his campaign position that he would likely replace Yellen when her term as chair ends in February next year.
In the interview, Trump said, “I do like a low-interest rate policy, I must be honest with you.”
The decision not to label China a currency manipulator represents one of the sharpest reversals of Trump’s brief presidency. Trump began to bash China in the 2015 speech that began his campaign, saying Beijing kept its currency artificially low to give its manufacturers an unfair advantage in global trade.