Published December 19, 2018 Markets FOXBusiness Facebook Twitter Comments Print video Federal Reserve’s main motivation is to prop up stock market: Ron Paul Former GOP presidential candidate Dr. Ron Paul discusses how former Federal Reserve chairman Alan Greenspan told investors to “run for cover” and how the Federal Reserve has affected the stock market. U.S. stocks rose Wednesday, hours before the Federal Reserve is expected to announce its interest rate decision and on renewed optimism that a trade deal with China is coming together. Continue Reading Below Ticker Security Last Change %Chg I:DJI DOW JONES AVERAGES 23736.4 +60.76 +0.26% SP500 S&P 500 2546.16 +0.22 +0.01% I:COMP NASDAQ COMPOSITE INDEX 6783.9114 +30.18 +0.45% Treasury Secretary Steven Mnuchin said Tuesday in an interview with Bloomberg that U.S. and Chinese officials will meet next month to work out a truce in the current trade … [Read more...] about Stocks up ahead of Federal Reserve interest rate decision
Federal reserve raises rates
Trump says ‘foolish’ for Fed to raise rates next week
WASHINGTON -- President Donald Trump said on Tuesday it would be a mistake if the Federal Reserve raises interest rates when it meets next week, as it is expected to do, continuing his criticism of the US central bank. "I think that would be foolish, but what can I say?" Trump told Reuters in an interview. Trump added that he needed the flexibility of lower interest rates to support the broader US economy as he fights a growing trade battle against China, and potentially other countries. "You have to understand, we're fighting some trade battles and we're winning. But I need accommodation too," he said. Trump named Jerome Powell as Fed chairman, but has repeatedly railed against him since he took over as head of the US central bank last February. Trump in August told Reuters that he was not "thrilled" with Powell's raising interest rates. … [Read more...] about Trump says ‘foolish’ for Fed to raise rates next week
The dramatic shift in expectations on US Federal Reserve interest rates, in one chart
Global financial markets are changing their view on the path of likely interest rate increases from the US Federal Reserve — one of the most important Pricing in the overnight index swap market implies markets only expect two rate hikes from the Federal Reserve, rather than three or more. It’s a reflection of growing concerns that the US economy is at the end of its current cycle of growth, meaning the Fed won’t be able to tighten monetary policy as aggressively as previously thought. SYDNEY — One month ago financial markets were positioned for a series of at least interest rates increases from the US Federal Reserve in the year ahead, continuing the gradual path of policy tightening that’s been in pace since late 2015. But now doubts are creeping in. As seen in the chart below from Capital Economics, after pricing in the likelihood of at least three further 25 basis point increases in the Fed funds rate one month ago, financial markets are now only … [Read more...] about The dramatic shift in expectations on US Federal Reserve interest rates, in one chart
Trump steps up his attacks on Federal Reserve’s rate hikes
WASHINGTON — President Donald Trump on Thursday escalated his attack on the Federal Reserve's interest rate increases, asserting that "the Fed is out of control" and blaming it for this week's plunge in stock prices. "It's a correction that I think is caused by the Federal Reserve with interest rates," Trump said when asked by reporters in the Oval Office about the stock market swoon. He added, "We have interest rates going up at a clip that's much faster than certainly a lot of people, including myself, would have anticipated. I think the Fed is out of control." It was the latest in series of recent barrages the president has unleashed at the Fed, which under his hand-picked chairman, Jerome Powell, has been gradually raising rates as the economy has strengthened to prevent a run-up in inflation. Critics have expressed worry that the president's attacks threaten the Fed's ability to operate free of political pressure. Though Trump said he objected to the Fed's continual rate … [Read more...] about Trump steps up his attacks on Federal Reserve’s rate hikes
‘The Fed has gone crazy’: Trump rails against Federal Reserve over rate hikes amid market plunge
David Choi, provided by Published 6:12 pm CDT, Wednesday, October 10, 2018 Drew Angerer/Getty Images President Donald Trump said he believes "the Fed has gone crazy" amid recent interest rate hikes. Trump's statement comes after stocks plunged on Wednesday. The Nasdaq Composite index and the Dow Jones dropped more than 4% and 800 points respectively. The Fed is expected to raise interest rate through the end of 2018 and into 2019 President Donald Trump signaled his anxiety about the Federal Reserve's plan to keep raising interest rates into 2019 after stocks plunged on Wednesday. "I think the Fed is making a mistake," Trump said to reporters after landing in Erie, Pennsylvania, for a campaign rally on Wednesday. "They are so tight. I think the Fed has gone crazy." After the Nasdaq Composite index and the Dow Jones dropped more than 4% and 800 points respectively on Wednesday, Trump said "it's a correction that we've been waiting for for a long time." "But I … [Read more...] about ‘The Fed has gone crazy’: Trump rails against Federal Reserve over rate hikes amid market plunge