Trump Touts Tariffs, Lashes at Fed in Interview: Key Takeaways
(Bloomberg) -- Donald Trump loves the word “tariff” and thinks Fed Chair Jerome Powell has among the easiest jobs in Washington.
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In an interview with Bloomberg three weeks before the Nov. 5 election, the former president eschewed traditional economic thinking, complained about US allies Mexico and France and made clear he’s even more hawkish on trade than he was in his first term.
Here are five key takeaways from the hour-plus interview at the Economic Club of Chicago.
Beautiful Words
Trump called tariffs “the most beautiful word in the dictionary,” launching into a broad defense of his protectionist policies. In an interview that at times sounded like it was out of his trade-focused 2016 campaign, Trump complained that the US is being taken advantage of by China, Mexico and France. “All you have to do is build your plant in the United States, and you’ll have no tariffs.”
Anti-Establishment
Parrying with Bloomberg editor-in-chief John Micklethwait, Trump rebuffed entreaties to stay on topic as he pushed back on economic orthodoxy and the financial press on trade, deficits, interest rates and the dollar. “You’ve been wrong all your life on this stuff,” he said.
Corporate Clashes
Trump said he wouldn’t allow US Steel to be bought by Nippon Steel, citing national security concerns, prompting shares to fall. He stopped short of saying he would break up Google, but complained that “Google is rigged just like our government is rigged.” And on TikTok, he said he still views the Chinese-owned social media site as a threat despite changing his opinion on banning it from the US. “I think everything is a threat. Sometimes you have to fight through the threats.”
Russia Ties
He declined to say whether he has kept an open line of communication with Russian President Vladimir Putin, as author Bob Woodward reported in a new book out today. “I will tell you that, if I did, it’s a smart thing,” Trump said.
Fed Fight
Asked whether he would seek to remove Jerome Powell as head of the Federal Reserve, Trump sidestepped the question, instead mocking the chairman’s job. “I think it’s the greatest job in government. You show up to the office once a month and you say, ‘let’s say flip a coin’ and everybody talks about you like you’re a god,” Trump said. He defended the right of the president to jawbone the Federal Reserve into raising or lowering rates — but then complained that Powell dropped rates too low after Trump expressed his displeasure at higher rates.
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