Former Fed chief Ben Bernanke said on Monday that President-elect Donald Trump calling China a currency manipulator doesn't "fit with reality," and warned about the dangers of a trade war.
"One of the things the candidate said he would do was label China a currency manipulator, which means that China is keeping its currency artificially low in order get an advantage in exports," said Bernanke, who headed up the U.S. Federal Reserve from 2006-2014. "Of course, China right now is working very hard to keep the renminbi from falling. So it's a little bit inconsistent."
Bernanke made the comments from the Washington Press Club in a wide-ranging question-and-answer session that was video-conferenced at the UBS Wealth Insights conference held in Singapore.
President-elect Trump had vowed to label China a currency manipulator for the purposes of a competitive trade advantage and threatened to impose a tariff of as much as 45 percent on China's exports to the U.S.