Former Bank of Israel Governor and Deputy US Federal Reserve Chair Prof. Stanley Fischer has launched a scathing attack on US President Donald Trump at the "Globes" Governors Conference in Tel Aviv. He said, "The problem with Trump's approach to trade is that he doesn't understand trade. Trump only understands if somebody wins and somebody loses. Both sides profit if they have a head on them and they know how to conduct negotiations."
Fischer said sarcastically, "I understand that Trump is an expert on this. He didn't write the book but somebody wrote a book in his name on "The Art of the Deal." But that's not what happens in international trade. An economist would take this more seriously. Trump does not understand, simply does not understand and if he does understand then he has successfully concealed the fact."
He said that the world's economy successfully rebuilt itself after and since World War II with growth and stability. "But almost every day we see steps by the US that weaken the global economy in terms of trade and international relations."
Fischer continued, "It's not serious but it's very serious and causing much damage to the world economy, which is the economy of countries." He added that the imposition of mutual tariffs by China and the US, "is virtually insufferable, and the situation is deteriorating all the time. I'm very concerned about this."
Fischer remarked, "I am almost certain that if Trump had not intervened, the Fed would not have raised the interest rate (last December). Trump provoked them into asking, 'how can we prove that we are not taking instructions from him.' That's a large part of our problem. The Fed is a professional place with excellent economists."
Published by Globes [online], Israel business news - en.globes.co.il - on September 1, 2019
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