Fed Vice Chairman: Strong Growth Supports Case for Continued Rate Rises
Fed Vice Chairman: Strong Growth Supports Case for Continued Rate Rises
Trump, citing interest rate hikes, says he 'maybe' regrets nominating Fed boss Powell
28 October, 2018, 07:45
US President Donald Trump told the Wall Street Journal in an interview that he was intentionally sending a direct message to Federal Reserve chairman Jerome Powell that he wanted lower interest rates, even as he acknowledged that the US central bank is an independent entity. Before becoming the president he had complained that the bank is moving very slowly in increasing the interest rates.
Federal Reserve Vice Chairman Richard Clarida, in his first major policy speech since being seated at the central bank, said more interest rate increases are likely warranted as the economy continues to gather strength.
"President Donald Trump's recent public criticism of Fed Chair Jerome Powell is a clever attempt to pre-emptively blame the Fed and its interest rate hikes for any future downturn in the United States economy". "China, the European Union and others have been manipulating their currencies and interest rates lower, while the U.S.is raising rates while the dollars gets stronger and stronger with each passing day - taking away our big competitive edge", Trump tweets.
The fed funds rate target is now 1.75 percent to 2 percent, and that is the rate closely tied to consumer debt, particularly credit cards, home equity lines and other adjustable-rate loans.
Many experts believe this is being done to curb the possibility of unsustainable economic growth, which could manifest as inflation or grow into a financial bubble. "I don't know", the president said. George HW Bush blamed his 1992 election defeat on then-Fed Chairman Alan Greenspan, and Lyndon B. Johnson clashed with Fed chief William McChesney Martin over raising rates in 1965. The minutes of that meeting, released last week, showed that every policymaker favored raising rates. When factoring in inflation, the rate on short-term borrowing is near zero percent.
NatWest's chief USA economist, Michelle Girard, said on CNBC after Powell's speech that the question has been what will happen after the Fed gets to neutral, and Powell addressed that.
"With the economy now operating at or close to mandate-consistent levels for inflation and unemployment, the risks that monetary policy must balance are now more symmetric and less skewed to the downside".
That will serve as "a tailwind for the economy, not a headwind", in conjunction with lower taxes, he said. He joined Trump's other two picks, Powell and Randal Quarles, who now sit on the board with Lael Brainard, an appointee of former President Barack Obama.
The criticism echoes comments Trump made last week in an interview with Fox Business in which he said that the Fed is his "biggest threat". His confirmation helped fill the ranks on the Fed's Board of Governors, which was operating with three out of potential seven members.
Last weekend, he said at a rally in Montana that a congressman who body-slammed a Guardian reporter was "my kind of guy". Indiana Republican Senate candidate Mike Braun was airing a new ad equating Democratic Sen.
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The player once dubbed "Captain Cool" retired from Tests in 2014 and then relinquished the limited-overs captaincy in 2017. For three T20I match series against West Indies: Rohit Sharma (captain), Shikhar Dhawan , K.L.
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Sirisena had pledged accountability for war atrocities, but has faced global criticism for being slow to deliver on justice. Speaking to jubilant supporters outside his Colombo home late Friday, Rajapakse called on Wickremesinghe to step down.
Secretary of State Mike Pompeo said the revocation of the visas "will not be the last word on this matter from the United States". Trump has also blamed the Saudi de facto leader, who is known in media as "MBS", for the killing of Khashoggi.
The official says it has similar markings and characteristics as the packages containing bombs sent to other prominent Democrats. Trump has repeatedly criticised CNN as "fake news" and disparaged the mainstream news media as an "enemy of the people".
The new devices were described as similar to crude pipe bombs sent to former President Barack Obama , Hillary Clinton and CNN. Federal Bureau of Investigation officials said at a news conference that the devices appeared to be crude pipe bombs.
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