WASHINGTON—President Donald Trump said Wednesday the U.S. dollar “is getting too strong” and he would prefer the Federal Reserve keep interest rates low. 
 
 Mr. Trump, in an interview with The Wall Street Journal, also said his administration won’t label China a currency manipulator in a report due this week. 
 
 He left open the possibility of... 

 WASHINGTON (Reuters) - President Donald Trump signaled on Wednesday he could be moving closer to the mainstream on monetary policy, saying he had not ruled out reappointment of Janet Yellen to a new four-year term as Fed chair as he considers his choices for the central bank. 
 
 FILE PHOTO - Federal Reserve Chair Janet Yellen speaks during a news conference after a two day Federal Open Market Committee (FOMC) meeting in Washington, U.S., March 15, 2017. REUTERS/Yuri Gripas/File Photo 
 
 In an interview with the Wall Street Journal, Trump was asked if Yellen was “toast” when her term expires in February, a question that reflected a widespread assumption that he would put his own stamp on the monetary authority rather than rely on former President Barack Obama’s choice to run the Fed. 
 
 Trump replied with his most explicit comments about the Fed since taking office, saying that Yellen was “not toast,” that he had “respect” for her, and that he would prefer the Fed to keep interests rates low. 
 
 Though rates are rising under Yellen they remain low by historic standards. Yellen and other policymakers have emphasized that rates will rise only gradually in the months ahead, and that monetary policy would remain loose for perhaps years to come. 
 
 The Fed said it would not comment on Trump’s remarks. Yellen, who like Trump turned 70 last summer, has said little about the subject other than that she intended to serve out her current four year term. 
 
 Trump will have a chance to appoint five of the seven members of the Fed’s Washington-based Board of Governors, including a currently open job of vice-chair in charge of financial supervision. 
 
 His comments on Wednesday were cast in general terms. During the campaign he talked from both extremes - criticizing Yellen as a political hack who kept interest rates low to help the Obama administration, but also saying that as a businessman he liked to borrow cheap. 
 
 For President Trump, lower or slower-growing interest rates could make it easier to pay for any infrastructure program he proposes, and slow what has been a steady rise in the dollar that makes U.S. exports more expensive and hurts manufacturers. 
 
 In complimenting Yellen and citing the advantages of loose policy, Trump also appeared to downplay the likelihood he intends to reshape U.S. monetary policy along the lines called for by some of the more conservative voices in the Republican party. 
 
 Some key Republicans want the Fed to set monetary policy based on a mathematical rule. The most commonly used versions of those rules would recommend much higher rates for the U.S. at this point, with inflation near the Fed’s target and the economy near full employment. 
 
 “Maybe he’s learning on the job,” said Carl Tannenbaum, chief economist at Chicago-based Northern Trust. While his statements as a candidate were aimed at the election, he is now in an administration being counseled by more orthodox voices sensitive to what is needed to keep global bond markets on an even keel, he said. 
 
 “It’s not easy to find somebody who is going to have credibility in that job,” he said of Yellen and her possible replacement. “The confirmation process is not an assured thing these days. And the markets weigh in if they were to nominate somebody who didn’t share the Fed’s view of itself as independent.”
– President Trump managed to do an about-face on no less than three policies in an interview with the Wall Street Journal on Wednesday—and he made what analysts say were highly unusual comments about the American dollar in the process. "I think our dollar is getting too strong, and partially that's my fault because people have confidence in me," Trump said, adding that while a strong dollar sounds good, it will "hurt ultimately." But despite his concerns about a strong dollar making it harder for American firms to compete, he did an about-face on his campaign promise to label China a currency manipulator, saying Beijing hasn't manipulated its currency for months, and he doesn't want to risk losing China's cooperation on North Korea. The US dollar dropped sharply after Trump's comments, reports Bloomberg, which notes that other presidents have avoided commenting on the greenback's value to avoid causing major market movements. In the Journal interview, Trump also reversed his campaign policy on the federal Export-Import Bank, which insures foreign purchases of US goods, saying he now supports the institution because it helps small companies. During his campaign he said it was unnecessary. In a third policy shift, Trump signaled that he might appoint Fed chair Janet Yellen to another four-year term, "I do like a low-interest rate policy," he said. Reuters describes the comments as more evidence of Trump's "drift to the mainstream" on monetary policy.