Treasury labels China a currency manipulator, ratcheting up trade war

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Treasury labels China a currency manipulator, ratcheting up trade war
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BREAKING: The Trump administration has designated China as a currency manipulator, ratcheting up its trade war by slapping the world’s No. 2 economy with a label no U.S. president has used since 1994

The Trump administration designated China as a currency manipulator, ratcheting up its trade war by slapping the world’s No. 2 economy with a label no U.S. president has used since 1994.The move by the Treasury Department, following a series of sharp tweets from President Donald Trump earlier Monday, comes after China allowed the yuan to tumble — triggering a sharp sell-off in the U.S. stock market.

The new duties are scheduled to take effect on Sept. 1 unless the two sides are able to patch things up before then. But on Monday, that possibility seemed increasingly remote. U.S. officials had no immediate comment on the Chinese Commerce Ministry statement. However, U.S. farm sales to China are already down sharply this year a result of the trade war.

He's also been heaping pressure on the Federal Reserve to cut interest rates to boost the U.S. economy. Last week, the Fed cut its key interest rate by a quarter of a percentage point, citing the uncertainty caused by Trump's trade policies as one reason for the move. Lower interest tends to drive down the value of the dollar.

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