WASHINGTON (AP) - Backing away from a campaign pledge, President Donald Trump said Wednesday that his administration won't label China a currency manipulator in a report due this week, though he does think the U.S. dollar "is getting too strong."
Trump also said in an interview with the Wall Street Journal that he would prefer the Federal Reserve keep interest rates relatively low.
The president also left the possibility of re-nominating Janet Yellen for a second four-year term as Fed chair. That would mark another shift from his campaign position that he would likely replace Yellen when her term as chair ends in February next year.
In the interview, Trump said, "I do like a low-interest rate policy, I must be honest with you."
The decision not to label China a currency manipulator represents one of the sharpest reversals of Trump's brief presidency. Trump began to bash China in the 2015 speech that began his campaign, saying Beijing kept its currency artificially low to give its manufacturers an unfair advantage in global trade.
A weaker Chinese currency, relative to the dollar for example, makes Chinese goods more affordable for American consumers and U.S. goods more expensive in China.
"China is killing us," Trump had complained on the campaign trail. "They're devaluing their currency to a level that you wouldn't believe. It makes it impossible for our companies to compete."