US Drops China’s Currency Manipulator Label | US Core CPI Climbs Less than Forecast
Published January 14, 2020
The Trump administration formally reversed its decision to brand China a currency manipulator just two days before negotiators from Beijing and Washington are set to sign the first phase of the trade deal. The US said it made the change because China had agreed to refrain from devaluing its currency to make its own goods cheaper for foreign buyers.
This morning, the US labor department said the consumer price index rose by 0.2 percent in December after a 0.3 percent rise in November. While the core CPI, which excludes volatile food and energy prices, came in at 0.1 percent against the market expectation of 0.2 percent. The dollar index was trading a little higher at 97.52 levels after the release.
Boston Fed Reserve Bank President Eric Rosengren said that the outlook for the national economy is very optimistic and federal reserve policymakers have forecast an almost ideal outcome in 2020, in which the US labor market will stay strong and inflation will approach the central bank’s 2% target.