Despite Trump criticism, Fed sees need for more rate hikes

21 October, 2018, 02:09 | Author: Sally Reid
  • Last week US President Donald Trump called the Fed

The dollar rose to its best level in two weeks on Wednesday, as the US Federal Reserve signaled that the strong economy continues to justify additional interest-rate increases, Dow Jones Newswires reported.

Yellen spoke at a banking forum just days after the president repeatedly complained that the Fed was hurting financial markets and threatening economic growth by raising interest rates too quickly.

Last week, Trump criticized the United States central bank twice, saying it was raising interest rates so swiftly that it threatened the country's economic health.

"I'm not happy with what he's doing", said Trump in his interview with Fox Business on Tuesday, referring to chairman Jerome Powell, who was appointed by Trump previous year.

Trump has blasted the Fed since July for raising interest rates as unemployment nears record lows and economic growth accelerates due in part to the 2017 tax cuts.

Trump has recently waged a sustained campaign against the Fed, calling their interest rate hikes "crazy" and "loco".

"The current level of the policy rate is about right", Bullard said of the USA central bank's current short term policy rate, which is set in a range of between 2.00 percent and 2.25 percent.

In L.A., LeBron James preaches patience, hard work
James reached half-time with 18 points but Portland led 65-63 as the hosts were more accurate with their three-point attempts. The Showtime Lakers are back with LeBron James making a move to Los Angeles, or at least that is what Lakers fans are hoping.

Though the minutes did not refer to any of Trump's criticism, its message of further rate increases suggests that policymakers are not fazed by it.

A couple of policymakers said the Fed should hold a "periodic and systematic review of the strengths and weaknesses" of the Fed's monetary policy framework.

The hike was the third of this year and the display of unanimity at the September 25-26 meeting could bolster expectations the central bank's rate-setting committee will raise rates again in December.

Trump added he is not trying to oust or blame Powell, whom he appointed to replace former Chair Janet Yellen. Members argued in favor of pressing ahead with one more rate hike in December, bringing the total this year to four. Mnuchin said Trump's complaints simply reflected his preference for low interest rates.

"Precisely because of the uncertainty around the course inputs, the right strategy was to set a course based on your knowledge of the destination, winds, and performance of your plane; communicate that course clearly to air traffic control so everyone knew what you were doing; and then stick to that course steadily even as the course needle might waver from side to side across your instrument", he said.

When asked if he thought the President should be weighing in on the agencies, he replied: "I don't think he should be making comments on any federal agency". Rather, some of the central bankers appeared to see some indications of a stronger USA economy.

Recommended:



Popular

Turkish Reaction: We Won't Allow "Cover-Up" in Saudi Killing
Guterres "stresses the need for a prompt, thorough and transparent investigation into the circumstances of Mr. The news was reported on the basis of Saudi authorities having admitted the death on state television.

Premier League Preview: Huddersfield Town vs. Liverpool
Keita sustained a hamstring strain while on global duty with Guinea and is set to sit out the clash at the John Smith's Stadium. However, there has been no confirmation for Liverpool about Mane's injury.

Red Sox hope their rituals will carry them through World Series
In his 12th try, the 33-year-old finally conquered his October demon, to win his first career postseason start. Price had a career 5.42 postseason ERA and Kimbrel had allowed runs in all four appearances this postseason.

Joel Embiid Gets Trolled After Being Dunked On By Jaylen Brown
The Sixers were abysmal from deep against the Celtics , shooting a paltry 5-26 (19.2 percent) from beyond the arc. The Celtics played with a lot of energy at the end of the game and the Sixers looked resigned to losing the game.

Barefoot on the beach! Harry and Meghan hit Bondi
The adorable boy also wrapped his arms around the Duchess and handed her a bunch of flowers. He then goes on to stroke Prince Harry's beard.

Ohio State DE Nick Bosa leaving school, looking to draft
Ohio State star defensive lineman Nick Bosa suffered a muscular injury in the Buckeyes' game against TCU . Instead, he intends to turn his focus to what was already his inevitable next step: the 2019 NFL Draft .

Trump says being ‘very tough’ in talks with Putin
Aide Yuri Ushakov said that while a meeting should take place, "it would be heady to let the dust settle" first. The one-on-one meeting between Putin and Trump lasted for more than two hours.

MLB says Astros cheating allegations not major
The Astros beat the Indians to advance to the ALCS, where they trail the series 2-1 headed into Wednesday night's Game 4. Jackie Bradley Jr blew open Game 3 of the ALCS on Tuesday with a grand slam off Houston Astros reliever Roberto Osuna .

SoftBank's Saudi ties unnerve investors
At the closing press conference of the International Monetary Fund meeting in Bali, Indonesia, on Saturday he said he still planned on going.

Iran says Trump can not bring oil prices down by 'bullying'
But WTI prices could fall in the back half of the week, weighed by an increase in USA crude inventories, the note said. Brent crude LCOc1 was up 15 cents at $81.56 a barrel by 0735 GMT, after gaining $1.15 in the previous three sessions.