Tuesday, 18 December, 2018

Fed Vice Chairman: Strong Growth Supports Case for Continued Rate Rises

Trump says he 'maybe' regrets making Powell Fed chairman Trump, citing interest rate hikes, says he 'maybe' regrets nominating Fed boss Powell
Jodi Jackson | 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.

Recommended

  • Trump condemns political violence but demands end to media ‘hostility’

    Trump condemns political violence but demands end to media ‘hostility’

    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.
    Suspicious package mailed to CNN addressed to ex-CIA director John Brennan

    Suspicious package mailed to CNN addressed to ex-CIA director John Brennan

    He threatened this morning, on the heels of the attack on CNN , that the mass media "had better get its act to together and fast". The Soros package was believed to have been placed in a mailbox rather than mailed, a separate law enforcement source said.
    Ruben Loftus-Cheek proves point to Maurizio Sarri with stunning hat-trick

    Ruben Loftus-Cheek proves point to Maurizio Sarri with stunning hat-trick

    It was a night that will never be forgotten by the 22-year-old as he scored his first career hat-trick for the west London club. The England worldwide has made just one appearance in the Premier League so far this season and that was from the bench.
  • MS Dhoni Dropped From T20I Squads For Windies, Aus Series

    MS Dhoni Dropped From T20I Squads For Windies, Aus Series

    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.
    88% of Android apps syphon personal data to Facebook, Google and more

    88% of Android apps syphon personal data to Facebook, Google and more

    While Google try to reconfigure the app to avoid the issue, users can protect their data by turning off background data usage. A extreme case stated that the user had to cough up as much as $385 where he saw Google News absorbing nearly 25GB of data.
    Griffin's career game lifts Pistons over Sixers in OT

    Griffin's career game lifts Pistons over Sixers in OT

    Glenn Robinson III, acquired as a free agent from IN , did not play after logging 33 minutes combined IN the first two games. Andre Drummond had 14 points and 16 rebounds before he was ejected late in regulation after picking up his second technical.
  • Powerball numbers drawn for $750M jackpot

    Powerball numbers drawn for $750M jackpot

    The drawing Saturday night will come four days after someone won a $1.537 billion Mega Millions jackpot, the second-largest prize. A retired veteran, Raymond Heft of Madison, is the lucky victor of the $1 million Powerball drawing from Wednesday, Oct. 24.
    Sirisena suspends parliament as political crisis deepens in Sri Lanka

    Sirisena suspends parliament as political crisis deepens in Sri Lanka

    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.
    Murder of Khashoggi ‘premeditated’, says Saudi prosecutor

    Murder of Khashoggi ‘premeditated’, says Saudi prosecutor

    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.
  • Packages to Biden, De Niro seized, similar to earlier bombs

    Packages to Biden, De Niro seized, similar to earlier bombs

    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".
    More Bombs Directed at Democrats, Trump Critics

    More Bombs Directed at Democrats, Trump Critics

    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.
    World’s longest sea bridge opened only to drivers with special permit

    World’s longest sea bridge opened only to drivers with special permit

    And the land transport logistic companies in Hong Kong are one of the sectors expecting to benefit from the bridge. While an impressive engineering feat, the building of the bridge brought its own controversies.

China denies spying on Trump’s iPhone, says he should switch to Huawei China denies spying on Trump’s iPhone, says he should switch to Huawei But Trump's aides have reportedly warned that Russian spies are "routinely eavesdropping" on his calls, the report said. But Trump kept his personal phone because he did not have any numbers stored on the government phone, they said.

Islamic Jihad announces Gaza ceasefire with Israel Islamic Jihad announces Gaza ceasefire with Israel The Palestinian Health Ministry estimates the number of Palestinian fatalities at over 200 people since March. The majority have died during protests, while smaller numbers have been killed by airstrikes and tank fire.

Blowtorch used to kill spiders may have started California house fire Blowtorch used to kill spiders may have started California house fire Firefighters responding to a reported structure fire at a home in Fresno found flames shooting from a second-story attic. Authorities said the man was house-sitting for his parents when he noticed some black widow spiders on an outside wall.

Japan's Abe begins a rare visit to China Japan's Abe begins a rare visit to China Analysts say the optics of Abe's three-day visit will be more important than the concrete outcomes, which are likely to be modest. But as Trump's tariffs bite, China has increasingly looked to Japan to serve as a hedge against growing U.S. protectionism.

Skinning Animals In 'Red Dead Redemption 2' Can Be Brutally Savage Skinning Animals In 'Red Dead Redemption 2' Can Be Brutally Savage The digital edition of the game has a price tag of US$59.99, but those who want a physical copy of the disc must pay US$20 more. Once you have Dead Eye properly enabled, it shouldn't be a problem to clear any bandit camps in Red Dead Redemption 2 .

Raiders players turn on Jon Gruden over broken vows Raiders players turn on Jon Gruden over broken vows This week began with the Oakland Raiders shipping two-time Pro Bowl receiver Amari Cooper to the Dallas Cowboys for a first-round pick.

Pliskova advances as Stephens hands Osaka lifeline Pliskova advances as Stephens hands Osaka lifeline However, Osaka fought back to earn two break points and levelled the match at 5-5 with a brilliant forehand victor . The Dutch player went for broke and ran the Wimbledon champion around the court to take control of the contest.

IB admits its men were apprehended outside Alok Verma's residence IB admits its men were apprehended outside Alok Verma's residence According to an ANI report, seven of the 13 transferred officials were on the same team that was investigating Asthana's case. The CBI was directed to maintain status quo and was also ordered to not arrest Asthana until the next date of hearing.

Guide: Red Dead Redemption 2 - How Long Does It Take to Beat? Guide: Red Dead Redemption 2 - How Long Does It Take to Beat? It runs half an hour long but if you're truly torn between consoles, it could help make your decision a bit easier. Hopefully, once the game finishes downloading, you can spend a couple hours exploring the Wild West before bed.

Elle Magazine apologizes for false Kanye-Kim breakup report Elle Magazine apologizes for false Kanye-Kim breakup report I love to let my husband be who he is. "She was the phone mule", Kardashian told Baldwin . Kardashian West said the experience made her quite afraid.

'Trump said it's okay': Man accused of groping woman invokes Trump 'Trump said it's okay': Man accused of groping woman invokes Trump Alexander was accused of grabbing a woman's breast without their permission while on a flight from Houston to Albuquerque. According to the complaint, she told him "she didn't know why he thought it was ok [to touch her] and he needed to stop".

Prince Harry Visits World's Largest Sand Island In Australia Prince Harry Visits World's Largest Sand Island In Australia The 28-year-old said: "As soon as I introduced my daughter to Harry, he said "That's a great name". Prince Harry and Meghan Markle have left Hervey Bay as they make their way to Fiji.

'Halloween' opening weekend breaks box office records 'Halloween' opening weekend breaks box office records Cast member Jamie Lee Curtis poses at a premiere for the movie " Halloween " in Los Angeles, California, U.S., October 17, 2018. In " Halloween ", Curtis plays Laurie Strode , reprising the role that made her famous in a final face-off with Michael Myers.

Cowboys trading for Raiders WR Amari Cooper Cowboys trading for Raiders WR Amari Cooper But few believed the Cowboys were desperate enough to give away their future first round pick in an attempt to save their season. Cooper was at practice in Alameda on Monday before multiple reports surfaced that he had been shipped out.

Dodgers power past Brewers to return to World Series Dodgers power past Brewers to return to World Series Urias got Yelich out as Chris Taylor made a sensational sliding catch in the left center gap that swung momentum to the Dodgers. The Los Angeles Dodgers are now four wins away from being two World Series titles away from tying the Giants' mark this decade.