An economist says Trump is right: Investment is down and the Fed should help

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An economist says Trump is right: Investment is down and the Fed should help via YahooFinance

Stocks saw their worst day of the year on Monday, after Beijing suggested it was weaponizing its currency by devaluing it— the latest sticking point in an ongoing U.S.-China trade war.

“I’ve been a forecaster my entire professional life and one thing we always look at is where’s investment going — because investment determines future hiring, future productivity, and future real wages and real incomes,” Milken Institute chief economist William Lee told Yahoo Finance during a recent interview.

“It’s called ‘currency manipulation,’” Trump said in a Twitter post. “Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!” “But remember the long-end — the 10-year treasury and the 30-year Treasury — are dropped down to the 170s now because global interest rates are also incredibly low,” he added.Both Europe and Japan have implemented below-zero interest rates, in an unconventional bid to boost growth and inflation.

 

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