China responds to Trump claims of currency manipulation

Donald Trump's newly appointed Treasury secretary Steven Mnuchin has said that "very significant" tax reforms will be in place in the U.S. by August.

"One of the important jobs in this parts of the role is to make sure that I reach out to my counterparts and that we're focused on creating objectives that will create economic growth for us and sustained economic growth throughout the world", Mnuchin said.

"There's a lot of confidence in the Trump administration and in the desire to be invested in the USA", he said.

"I'm committed that under this administration we're going to have housing reform so that we don't just leave these entities the way they are", Mnuchin said.

President Donald Trump's treasury secretary also repeated a promise that tax cuts would benefit the middle class and not, primarily, the rich.

When asked about these projections, Mnuchin said the Fed and CBO had not been missing anything, but that they had been making their judgments based "on the status quo ... we're looking at significant economic changes".

US Treasury Secretary Steven Mnuchin signaled no urgency to designate China a currency manipulator, as he wants to use a regular review of foreign-exchange markets to determine if the US's largest trading partner is cheating.

Asked about a proposed border adjustment tax on imports, Mnuchin said, "we are looking at it". Mnuchin said that the strength of the dollar has to do with where the US economy is relative to the rest of the world's. "We will have our own set of financial projects", Mnuchin said.

Share markets have jumped since the November presidential election in what has been dubbed the "Trump rally".

High-yielding currencies also pushed ahead, with the Australian dollar up 0.2 percent and South Korean won 0.4 percent higher. "More normalized economic growth is 3 per cent or higher", he said.

Economists both within and outside China reject Trump's claim - repeatedly aired during his campaign - that China is guilty of purposefully forcing down the value of its currency, the renminbi or yuan, in order to boost its own exporters and hamstring United States manufacturers.

"But ultimately outside of the US there is reflation happening and data is looking strong, so perhaps it's time to just take some dollar longs off the table".

  • Leroy Wright