Trump takes swipe at Fed for raising interest rates too quickly

Treasury Secretary Steve Mnuchin right says the president respects the central bank's independence

Despite fierce blowback from President Trump, the Federal Reserve's policymakers unanimously agree they should keep hiking interest rates to cap inflation.

So far this year, policymakers have already voted to hike short-term interest rates three times, and are poised to do so again in December, staying the course they laid out late last year.

Senior Federal Reserve officials believe that interest rate hikes should continue until the economy slows down, according to minutes from the central bank's September meeting.

USA stock prices recovered some earlier losses but were still down for the day following the minutes.

Trump told Reuters in August he was "not thrilled" with Fed Chair Jerome Powell for raising interest rates, and has since escalated his criticism, this week saying the central bank is his "biggest threat", and last week calling the Fed "crazy", "loco", "ridiculous", and "too cute".

Treasury yields were little changed.


Last week, Trump criticized the USA central bank twice, saying it was raising interest rates so swiftly that it threatened the country's economic health. Following the rate increase in September, Trump said he was "not happy" with the decision.

This would move United States interest rates slightly above what policymakers say is "neutral" - that is, neither slowing nor speeding the economy - but some participants said the Fed may need to go even further than that. The central bank is nominally independent of the executive branch, though US presidents appoint the bankers to their posts.

Presidents can only remove a Fed board member "for cause" beyond policy disagreements.

"Almost all participants saw little change in their assessment of the economic outlook, although a few of them judged that recent data pointed to a pace of economic activity that was stronger than they expected earlier in the year", according to the minutes.

The minutes did note concerns about the impact of Trump's get-tough trade policies, citing business contacts who expressed worries about lost markets and rising prices for steel and aluminum.

Republican U.S. Representative Jeb Hensarling, who is set to retire as chairman of the House of Representatives Financial Services Committee that oversees the central bank, said Trump "clearly has his own style". "I'm not happy with what he's doing because it's going too fast" in raising rates at a time when inflation has remained relatively low.

Related News:



Most liked

Antibiotic-resistant salmonella outbreak includes Kentucky — CDC
Because no common supplier has been found, the CDC can not steer people away from any particular source of raw chicken. The illness usually lasts 4 to 7 days, and most people recover without treatment other than fluids, the CDC says.

Kristen Bell Calls Out Disney's Snow White for Sending the Wrong Messages
The story evolves around Attempted Murder by Poisoning, Witchcraft, Dwarfs with personality disorders & a talking mirror. In fact, one could even say that " Snow White " teaches a lesson in cheerful naivete regarding the witch's trick.

Dutch finance minister cancels visit to Saudi investment conference
A Turkish newspaper says the consul himself, Mohammed al-Otaibi, can be heard in the audio recording of Mr Khashoggi's death . Khashoggi had left the country previous year amid the rise of Prince Mohammed, whom he wrote critically about in the Post .

Ebola claims 24 lives in one week in DR Congo
Since Ebola virus was first identified in 1976, sporadic outbreaks have been reported in Africa. The health ministry said 73 patients had received new experimental treatments.

Bullpen shines, but Bellinger’s walk-off victor ties NLCS 2-2
The backup catcher batted.205 with four home runs and 14 RBIs on the season and was 1 for 7 in the playoffs coming into Game 5. Dozier plated the Dodgers' first run with an RBI single in the bottom of the first frame, giving Los Angeles its initial lead.

May 'to consider' extending UK's post-Brexit transition period
The Irish have likened it to an insurance policy. " No deal the PM can secure will be as good as staying in the European Union ". The UK PM Prime Minister Theresa May is on the wires, via Reuters, speaking before the second day of the EU Brexit Summit.

Despite Trump criticism, Fed sees need for more rate hikes
But others argued against stronger tightening of monetary policy without "clear signs" the economy is running hot. Analysts have pointed to rising interest rates, which can make stocks a less attractive investment.

LeBron James Sinks 40-ft Shot To Beat The Clock For Lakers
James, who didn't play in the Lakers' last exhibition game, had 15 points, 10 rebounds and five assists in a dominating half. One of Ball's teammates, Josh Hart, made sure to poke some fun at the 20-year-old point guard's airball on social media.

Man linked to Saudi prince spotted at consulate before Khashoggi disappearance
Turkish police on Monday night also carried out an eight-hour search at the consulate itself, taking away soil and DNA samples. All of the identified individuals have since left Turkey. "Sooner's better than later for everyone", Pompeo said.

Check out Ranbir Kapoor and Alia Bhatt’s latest pictures from NY
And now Alia is back with her beau, in New York City to support him as his ailing father undergoes treatment at a hospital there. The actor shared a picture of her beloved son actor Ranbir Kapoor on Instagram on Tuesday and her fans loved every bit of it.

Trump To Send Troops, Close Border if Mexico Won't Stop Migrant March
The migrant caravan from Honduras has swelled in size despite President Donald Trump threatening to cut aid to the country. Again, Trump used the caravan to push tough immigration laws, which were rejected by Democrats.

Twitter weighs in on Cassie and Diddy breakup
Following their separation, Diddy has apparently moved on and has been spotted with the 26-year-old model, Jocelyn Chew . As of Wednesday (Oct. 17), Cassie still has photos of Diddy on her Instagram account, but she is not following him.

Astros Suspected of Cheating In ALCS, ALDS
When asked if he felt like anything was going on during the first two ALCS games at Fenway Park, Cora responded, "No, I don't". Ironically, it was the Red Sox who were fined by the league last season for using an Apple Watch in a sign-stealing scheme.

Arsene Wenger: Craig Bellamy makes Premier League prediction about former Arsenal boss
The veteran coach recently admitted he has received "enquiries from all over the world" as he plans a return in January. Wenger managed Ozil between 2013 and 2018 at Arsenal , and insists that the Germany national team miss the playmaker.

UK PM Theresa May says open to longer post-Brexit transition
Brexit must be orderly for everyone and for all the issues including the island of Ireland . However, in reality the prime minister had little choice but to ask for an extension.