WASHINGTON (Reuters) - U.S. President Donald Trump said on Friday that the Federal Reserve had made a mistake by raising interest rates and blamed the central bank for hurting the U.S. economy and stock markets. U.S. President Donald Trump talks to reporters at his Mar-a-Lago estate in Palm Beach, Florida, U.S., March 29, 2019. REUTERS/Joshua Roberts “Had the Fed not mistakenly raised interest rates, especially since there is very little inflation, and had they not done the ridiculously timed quantitative tightening, the 3.0 percent GDP, & Stock Market, would have both been much higher & World Markets would be in a better place!,” Trump tweeted. The remarks were part of a new broadside against the independent central bank by the White House in an unusual public split. The Fed’s Board of Governors did not immediately comment. Prior administrations have taken care not to comment on Fed policy, but Trump has railed repeatedly against the U.S. central … [Read more...] about White House calls for Fed to reverse on rate hikes
Powell on rate hikes
Wall Street awaits latest Fed decision on rate hike amid global slowdown
Breaking News Emails Get breaking news alerts and special reports. The news and stories that matter, delivered weekday mornings. SUBSCRIBE March 20, 2019, 4:32 PM GMT By Martha C. White With economic growth slowing, Wall Street gyrated Wednesday on the expectation that the Federal Reserve will not increase interest rates at its meeting, which concludes Wednesday afternoon. As recently as December, the Fed was expected to raise rates twice this year; now, economists say it might raise rates only once — or not at all, as the central bank seeks to avoid roiling markets. “It’s very clear that there will be no hike on Wednesday, no question about that. The question, of course, is what expectations will be presented for the rest of the year,” said Dan North, chief economist at Euler Hermes North America. “The Fed is likely to try and convey or better quantify this ‘patient’ stance,” said Lindsey Piegza, chief economist for Stifel Fixed … [Read more...] about Wall Street awaits latest Fed decision on rate hike amid global slowdown
Threats to economy spurred Fed to hit pause on rate hikes, minutes show
Visit The Boston Globe Share on Twitter Share on Facebook Comment on this Scroll to top of page By Martin Crutsinger Associated Press February 21, 2019 WASHINGTON — Federal Reserve policymakers last month noted greater threats to the US economy, ranging from adverse effects of the government shutdown to rising trade tensions, and decided to emphasize that they would be ‘‘patient’’ in raising interest rates.Minutes of the Fed’s January discussions, released Wednesday, showed that Fed officials also felt that further rate hikes might only be needed if inflation were to accelerate.Fed officials also appeared close to agreeing on a plan to stop reducing their enormous bond portfolio before year’s end — a step intended to help ease upward pressure on borrowing rates. Advertisement The minutes showed that Fed officials believe a ‘‘patient approach’’ to rate hikes would give them more time … [Read more...] about Threats to economy spurred Fed to hit pause on rate hikes, minutes show
US Fed to remain patient on rate hikes
US Fed to remain patient on rate hikesWASHINGTON, D.C.: The US Federal Reserve will make its first interest rate announcement of the year on Wednesday (Thursday in Manila) but almost certainly will make it clear it will remain patient about any further moves. The US central bank increased the benchmark rate four times last year but rising concerns about a slowing US economy, amid a trade war with China, prompted officials to signal they will take time to gauge the economy’s performance. A five-week government shutdown also dented economic performance in the first quarter of the year although most of that is expected to be recovered. Federal Reserve Chairman Jerome Powell late last year repeatedly shook up markets with comments considered to be overly optimistic and hinting at more rate hikes to come. Facing blowback from his efforts to speak plainly, Powell retreated from his stance and made an effort to stress the uncertainty about the economic outlook.He likened the … [Read more...] about US Fed to remain patient on rate hikes
US Fed: ‘can afford to be patient’ on rate hikes
WASHINGTON -- US central bankers "can afford to be patient" before raising interest rates again, given low inflation and uncertainty about the outlook, according to the minutes of the Federal Reserve's December policy meeting. And while they continue to expect "some" more rate hikes at some point there would be a "relatively limited amount," according to the minutes of the rate-setting Federal Open Market Committee's December 18-19 meeting. The timing is "less clear" now due to a contrast between the solid US economic data and the fears of a possible downturn amid rising trade confrontations displayed by financial markets and expressed by businesses, according to the report. "Against this backdrop...especially in an environment of muted inflation pressures, the committee could afford to be patient about further policy firming," the minutes said. US and global stock markets retreated sharply in the closing weeks of 2018 amid the US-China trade confrontation and fears rising interest … [Read more...] about US Fed: ‘can afford to be patient’ on rate hikes