Under Trump, U.S. Manufacturing Suffers Its Largest Contraction In A Decade
President Donald Trump lashed out at the Federal Reserve again on Tuesday, after the Institute for Supply Management reported a contraction in manufacturing this week.
According to CNBC, the ISM manufacturing reading fell to 47.8 for September — the weakest reading in ten years.
Trump blamed the Fed for the downturn, tweeting that Fed Chair Jerome Powell and the central bank “have allowed the Dollar to get so strong, especially relative to ALL other currencies, that our manufacturers are being negatively affected.”
The president also complained again that interest rates are “too high,” adding, “They are their own worst enemies, they don’t have a clue. Pathetic!”
But Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, said in a statement that “Global trade remains the most significant issue as demonstrated by the contraction in new export orders that began in July 2019.”
“Overall, sentiment this month remains cautious regarding near-term growth,” he wrote.
Trump has preferred to focus blame on the Federal Reserve for months now, repeatedly claiming the “the central bank bears the blame for any slowdown rather than his own policies.”
CNBC noted, however, that the value of the U.S. dollar also plays a role: “The dollar index, which measures the U.S. currency against a basket of global currencies, has climbed more than 3% this year and sits near its highest level since mid-2017.”
A stronger dollar makes American-manufactured goods more expensive overseas.