Gold prices extend gains as dollar sags after Donald Trump remarks

"It would appear that Mr. Trump would like to keep the us dollar a little on the weak side in order to remain competitive", said CMC Markets chief markets analyst David Madden.

The benchmark US interest rate, which plays a large role in setting borrowing costs for mortgages, credit cards, small businesses and auto loans, has roughly tripled since Trump was sworn into office past year.

The Fed is raising rates in an effort to keep prices stable and to prevent the economy from overheating, but Trump has complained the increased rates are obstacles to economic growth.

With the federal interest rate climbing twice this year, the organization has planned two more quarter-point rate hikes in 2018 and three more in 2019.

"I take comfort from Trump's nominations so far", said James McCann, senior global economist for Aberdeen Standard Investments.

Trump selected Powell for the job previous year from a short list of several prominent central bankers, praising Powell for his "wisdom" and "leadership" skills when he nominated him formally in November.

A Fed spokesman declined to comment on Trump's remarks on Monday.




The Federal Reserve last raised interest rates in June, when it signaled that it could raise them two more times this year. "As he said he considers the Federal Reserve Board Chair Jerome Powell a very good man and that he is not interfering with Fed policy decisions".

Neil Wilson, the chief market analyst at Capital.com, said in an email on Tuesday morning: "Trump's not thrilled with the Fed raising rates". He urged the Fed to avoid doing anything that could slow economic growth. "So I would hope the president would refrain from making comments like that".

But with Turkish markets closed for a religious holiday and anticipated talks between the United States and China seen lowering the temperature of the dispute, Trump's central bank comments were the main catalyst.

Corker said, based on his discussions with Powell last week, "I'm certain they're going to continue to be independent and do whatever they feel is appropriate". "You know, a lot of people beat up on the Fed".

The president said that he was told by advisers that Powell liked "cheap money" before he chose him to run the Fed, according to the Wall Street Journal. I probably have at times myself.

President Donald Trump is chastising the Federal Reserve chairman yet again.

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