Around $505 billion of Chinese goods were imported to the U.S.in 2017, leading to a trade deficit of almost $376 billion, USA government data shows.
"I'm not doing this for politics, I'm doing this to do the right thing for our country", the president said.
In the meantime, currency traders may need to pay closer attention to the president's Twitter feed. "We've been ripped off by China for a long time", he added.
"The escalating trade war, if it goes badly, could be a risk for the USA economy", Bullard said, adding he understands the policy's objective.
The CNBC interview will air in its entirety Friday but the network released excerpts Thursday.
Trump said that raising American interest rates makes investment in China comparatively attractive, because China manipulates its currency by artificially devaluing it.
President Trump says he's ‘not happy' with interest rate hikes
Put another way: The best way for the Fed to assert its independence is to do exactly the opposite of what Trump suggested. Trump said he was only expressing his opinion as a private citizen by criticizing the move to raise interest rates.
Trump's comments caused the Dow Jones Industrial Average to register a slight dip before the opening stock market bell in NY, though it then shook off the president's threat and rose again on strong USA corporate earnings growth.
Most economists believe the Fed's current policy of raising interest rates is sound monetary policy given United States consumer price inflation is at an annual rate of 2.9% and the unemployment rate was at 4% in June.
The first shots of the trade war were fired on July 6 when a 25 per cent tariff levied on US$34 billion worth of Chinese goods took effect, which prompted Beijing to react with tit-for-tat tariffs on American goods imported to China.
Speaking on condition of anonymity, the official said Washington was not trying to contain China, and its biggest concern was that President Xi Jinping's administration would "misread" its message.
Last month, the Fed raised its benchmark rate for a second time this year and projected two more increases in 2018. The United States then disputed the retaliatory tariffs at the World Trade Organization (WTO) on Monday, along with those the European Union, Canada, Mexico and Turkey imposed in response to new USA duties on steel and aluminum. The Fed is charged with keeping prices stable, often by raising interest rates to prevent the economy from overheating.
Trump is limited in how much direct pressure he can put on the Fed chief.
"So somebody would say, 'Oh, maybe you shouldn't say that as president.' I couldn't care less what they say, because my views haven't changed".
But one JPMorgan economists thinks Trump's public desire for lower interest rates could actually backfire.