Trump Again Blasts Fed For 'Even Considering' Rate Hike

Trump Again Blasts Fed For 'Even Considering' Rate Hike

Trump Again Blasts Fed For 'Even Considering' Rate Hike

A growing number of economists share Trump's basic argument - albeit in more diplomatic language - and have dramatically rolled back estimates for the number of increases in the benchmark lending rate they expect next year.

But this week, in the view of many analysts, the central bank could indicate that no more than two rate hikes are likely next year.

Stock markets continue to be nervous about the risks of a trade war between the U.S. and China, with fears of protectionism also affecting confidence in Germany, an economy heavily dependent on exports.

But she said people now believe the economy will not improve further, employment numbers will not get any better and the Fed will only raise rates in 2019.

Against this backdrop, observers are closely watching whether the central bank will slow down the pace, following eight rate hikes since 2015, when it ended the unusual zero percent rate policy.

Congress mandates the Fed, a private entity, with steering USA monetary policy to pursue full employment and stable prices.

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Yet the overarching message - in a statement after its latest policy meeting, in updated forecasts for the economy and interest rates and in a news conference by Chairman Jerome Powell - may be that the Fed plans to suit its rate policy to the latest economic data. "We also know that moving too slowly keeping interest rates too low for too long - could risk other distortions in the form of higher inflation or destabilizing financial imbalances", Powell said November 28.

President Trump on Monday slammed the Federal Reserve over interest rates. The Fed says it is raising rates to return them to a more normal setting and avoid the type of boom-and-bust economy that ended in past recessions. Even with the increase, rates will remain near their historically low rates.

On July 20, Trump told CNBC that he was "not happy" about the Federal Reserve raising interest rates. The Fed is widely expected to raise interest rates again on Wednesday. "We believe the USA economy can sustain strong performance next year, but it can ill afford a major policy error, either from the Fed or the rest of the administration", Druckenmiller said in a December 17 op-ed published by The Wall Street Journal.

Trump's Monday tweet was the result of Fed officials holding a two-day meeting that will conclude on Wednesday.

Powell, who was Trump's choice to lead the Fed, has endure increasing public attacks from the president.

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