Trump takes swipe at Fed for raising interest rates too quickly

Трамп назвав ФРС головною загрозою своїм економічним успіхам у США

The continued "gradual" rate increases are regarded as insurance against that possibility. The result is continual massive buildup of government, personal and corporate debt. This is because other central banks have not moved from the low interest rates. Despite the rate increases since 2015, the stance of monetary policy is still accommodative.

Fed officials overall expect rates to rise to 3.1 percent next year and 3.4 percent in 2020, just above their 3 percent estimate for the long-run "neutral" rate at which borrowing costs are neither braking nor stimulating economic growth.

Minutes from the latest Federal Reserve meeting in September showed yet another strong defense for policy makers to maintain their current path of gradually raising rates. The post crisis period marked by massive spending and effectively zero rate money may have lulled some of us into a belief that "free money" was here to stay.

The market has priced in another hike in December, with three more increases expected in 2019, which would take rates in the U.S. to a level slightly above neutral. The tools which are at the disposal of the central bank have the capabilities to boost the economy in short-term at the risk of high inflation and adverse consequences in the long term. He's argued that the US economy has been saddled with persistently low growth, so there is little need to raise interest rates much.

NO: The unemployment rate is the lowest it's been in 50 years. "The Fed's board was chosen very well by the administration, and it's a good group of people and they will do what they have to do". That was then, this is now.

Chinese city wants to launch artificial moon to 'replace streetlights'
However, an expert told the People's Daily that the artificial moon's light shouldn't be so bright that it would impact them. Another Russian attempt to launch a space mirror in 1999 fizzled before it got off the ground, according to The Guardian .

Still, the minutes showed that, for the moment at least, American policymakers were largely in agreement about the near future - despite the increasing heat from the president, who fears higher rates will derail his economic agenda.

A spokeswoman for the Fed declined to comment on the president's latest remarks. That's about how much the Fed has been raising rates every time it meets to do so. "And it's independent, so I don't speak to him". At that point, the policy rate would be at 3.4 percent, according to the median of Fed officials' individual forecasts. Higher rates can slow growth and the easy credit that has helped fuel stock markets in recent years. When interest-rate increases occur quickly, the impact could be significant to everyone, consumers and businesses alike.

"The economy keeps surprising to the upside". Furthermore, "some" at the meeting said risks grew as the USA economy increasingly outpaced its rivals" more sluggish growth "because of the potential for further strengthening of the dollar'. Shanghai's benchmark stock index tumbled overnight to close at a near four-year low and China's premier warned of risks to the economy. When it eases the monetary policy, it makes borrowing cheap which may or sometimes leads to a weaker dollar. This measured approach is already affecting some sections of the economy including housing and auto sales. In the USA, the Federal Reserve is an independent institution, although the president of the country still has the prerogative to assign or fire the chairman.

NO: The Federal Reserve is not being too aggressive with rates.

It is also in line with some beliefs that the United States is at the end of a 30-year bull run for bonds, with yields recently having broken out of their long-term downtrend.

Related News:

Most liked

Entering Israel after 15-day ordeal, barred USA student expresses relief
Alqasem's attorneys lauded the high court ruling as a victory for free speech, academic freedom and the rule of law. A spokeswoman for the immigration authority said she was released from the holding facility on Thursday evening.

Trump threatens to send military, shut border as migrants head for Mexico
The developments on Friday came as Mike Pompeo prepared to fly to Mexico to discuss migration with the country's officials. And hundreds more are traveling through El Salvador en route to Guatemala .

Canelo Alvarez inks $365M deal with streaming service DAZN
There's obviously a shot at Conor McGregor in there too (who lost by TKO last year), but Alvarez is the primary target. For Canelo's rematch with Golovkin, fans would have had to fork out £75 ($99) to watch on the television.

She delivers: Belfast author Anna Burns scoops Man Booker Prize for 'Milkman'
Burns said she'd "like to acknowledge all the great writers who were on the short list and long list with me". The Booker Prize judges praised Burns' third novel for its "surprising and immersive prose".

Donald Trump: Elizabeth Warren DNA Test Proves She Is 'a Phony'
Now Cherokee Nation denies her, 'DNA test is useless.' Even they don't want her. "We're not trying to play politics here either. Trump dismissed the results , once again using his " Pocahontas " nickname he previously gave to her.

Huawei Mate 20, Pro, and X Announced
There's an octa-core Kirin 980 CPU - an industry first 7nm chip - and 6GB of RAM inside, with storage options reaching 128GB. The HUAWEI Mate 20 Pro is equipped with a 40MP main camera , a 20MP ultra wide-angle camera , and an 8MP telephoto camera .

Pakistan vs Australia: Sarfraz taken to hospital, Khawaja may miss India Tests
Australia entered the two-Test series focused on the threat of leg-spinner Yasir Shah , although he managed just eight wickets. Pakistan batsman Azhar Ali found himself in a weird run-out on day three of the second Test against Australia in Abu Dhabi .

EPL: Sarri finally responds to Hazard's comments about Real Madrid move
Sarri laughed off claims from former Real Madrid president Ramon Calderon that Hazard was being kept like a slave at Chelsea .

Facebook, MTV team up for 'The Real World' return
It will be co-produced by MTV and owned by Viacom Inc and Bunim/Murray Productions (BMP), the studio behind the original series. The network also revived Jersey Shore , a program that was reportedly looked at when considering a Real World reboot.

Pregnant Meghan Markle reveals the 4.30am activity helping her sleepless nights
In one of the sweetest moments from the tour, Harry was greeted by one of his long-time admirers. Later, it was Meghan's turn for a cuddle.

Trump praises Republican congressman for body slamming journalist
Gianforte pleaded guilty in June 2017 to misdemeanor assault after he was accused of body-slamming journalist Ben Jacobs at a campaign event.

Lottery officials warn of Mega Millions scam
In early 2016, Powerball had a $1.6 billion grand prize , and that still stands as the highest lottery jackpot ever in the U.S. The amount you will win is likely $0, because the odds of winning either jackpot are one in several hundred million .

How to watch Brewers vs. Dodgers, NLCS Game 4
The lefty retired his last 13 batters and blanked Milwaukee following Lorenzo Cain's RBI double in the top of the second. Orlando Arcia flied out to left, with Chris Taylor and Bellinger almost colliding before Taylor made a sliding catch.

Robert Mueller to Release Russia Findings Immediately After 2018 Midterms
Quoting a US official, Bloomberg said Rosenstein had been pressing Mueller to conclude the investigation as soon as possible.

Horse race bet with William Hill
How to place a bet To place your wager/bet, all you need is to provide the appropriate information to the ticket writer. Simply you just have to pay £1horse bet and you can easily watch the live horse racing broadcast on your device.