Like I said, we could argue that the fed changing rates is different, and I wouldn't completely disagree with you. But if you put your self in the shoes of China, the Fed is pursuing a "self-serving purpose" of optimizing the U.S. economy, just like they are pursuing the purpose of optimizing theirs. It becomes splitting hairs, to anyone but you and I at least, to argue it's independence from Congress and President makes it not representing the U.S. government. While perhaps technically true, it unquestionably serves U.S. interests. The latest FOMC minutes actually mention trade and currency valuations a number of times, just to grab the first set I could find: https://www.federalreserve.gov/monetarypolicy/fomcminutes20190619.htm
Of course it serves American interests, it's the American Fed. Aiming for maximum employment while keeping inflation in check directly serves the American interest. But this exchange was not about whom it serves. It was about that fulfilling their mendate which by large they have done over decades did not aim at manipulating or even influencing exchange rates. Exchange rates are influenced by rates for obvious reason but the target of their interest rate decisions was never currency exchange rates but inflation management and employment targeting
I swam in the blue grotto in capri but now it seems that you can get fined https://www.theguardian.com/world/2...steps-fascist-style-measures-against-tourists
buffoons https://www.cnbc.com/2019/08/09/pet...f-it-devalues-yuan-to-neutralize-tariffs.html Peter Navarro says US will take strong action against China if it devalues yuan to ‘neutralize tariffs’ White House trade advisor Peter Navarro says the U.S. will respond forcefully if Beijing devalues its currency to “neutralize” the effect of tariffs. “Clearly, they are manipulating their currency from a trade point of view,” Navarro told CNBC’s “Closing Bell” on Friday. “They’re going to, and we’re going to take strong action against them.”
Trump is clearly running out of time and wants to settle a deal with China so he can have a shot at getting re-elected. The ISM manufacturing PMI is on the verge of getting below 50 and without this deal, we are likely headed towards recession, at which point Trump has nothing to say for his re-election campaign. He plays his cards forcefully that's for sure. First tariffs, then when the tariff gets neutralized due to currency devaluation (which they knew would be the natural outcome) he names China currency manipulator to force the tariffs to be effective. That's a one-two punch. Basically telling them to make a deal fast or I'm going to hurt everyone. China is putting up the front of not being scared, but they don't really want a trade war either. They just want to wait for Trump to be out of office. Doesn't seem all that different from what he is doing with Japanese auto-manufacturers to get what he wants.
https://www.politico.com/story/2019/08/09/imf-report-trump-currency-manipulation-1653096 The International Monetary Fund on Friday provided little or no support for President Donald Trump’s assertion that China is manipulating its currency for an unfair trade advantage. Not only that. IMF basically endorsed what China is doing. https://www.imf.org/en/Publications...tation-Press-Release-Staff-Report-Staff-48576 Exchange Rate: The exchange rate should remain flexible and market-determined to help absorb the tariff shock. Greater depreciation pressures and potential capital outflows will call for clear public communication and possible FX intervention to counter disorderly market conditions. In case FX market pressures persist and lead to herding and financial system stress, tightening existing CFMs in a transparent and temporary manner may be appropriate, as part of a broader policy package to stabilize the economy and markets.