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The Fed should listen to Trump on interest rates, says expert

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(Kitco News) - Interest rate differentials between the U.S. and its trading partners is putting unnecessary upward pressure on the U.S. dollar, says Todd “Bubba” Horwitz, chief market strategist at

“In this particular case, since everybody else is falling so fast, the spread between everybody’s [rates] is getting too wide, which is creating lot of pressure and actually forcing the dollar a lot higher,” Horwitz told Kitco News.

On the trade wars, the U.S. doesn’t need China and American companies can take their manufacturing elsewhere, he said.

“We do not need China, we can exist without China. They will have big trouble existing without us. They will go back into the dark ages,” Horwitz said.

American companies have other options when it comes to manufacturing and trade partners, he noted.

“There are plenty of places for cheap, slave labor. Let’s face what it is, it’s labor cost. But at the the end of the day, even the assembly of an iPhone, if you brought it here and assemble it here, it’s only $50 more. It’s not like, it’s the end of the world to assemble in the U.S.,” he said.

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