Trump says Fed is his ‘biggest threat’

Trump says Fed is his ‘biggest threat’

Rising interest rates may reach a level that matches U.S. President Donald Trump's relationship with the media. By the end of 2020, a substantial majority of policy makers expect to raise rates above their estimate of the long-term neutral level that neither restrains nor spurs growth, their forecasts show.

White House economic advisor Larry Kudlow said on Wednesday that Trump was not demanding a policy change after heaping more criticism on the Fed on Tuesday, when he called rising U.S. interest rates his "biggest threat".

As opposed to a mild brake on the economy, Bullard argued that rates that high "would be moving quite a ways into restrictive territory". Though inflation remains near the Fed's 2 percent target, he said current price gain readings may not be a great signal of how strongly the economy is running.

"Our economy is strong", Powell said at a press conference following the September meeting. "We just may not agree on how to get there".

The Fed is contending with how to manage one of the longest economic expansions on record without triggering a recession. That's an argument that Powell - who's said "there's a lot to like about low unemployment" - is certain never to make.

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Wall Street's major indexes edged lower after a choppy session on Wednesday after the Federal Reserve showed broad agreement on the need to raise borrowing costs further, cementing investor concerns that had helped cause a major sell-off the week before. Here they are, listed roughly from most unusual to least.

In what has emerged as a pattern recently, the administration official sought the day after Trump's comments to tamp down the unusual presidential criticism of the US central bank, saying that Trump actually largely agreed with the Fed.

The president has vehemently expressed his displeasure on multiple occasions.

Trump also shared his misgivings about Fed Chair Jerome Powell, whom he appointed in February to replace Janet Yellen. "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.

"My biggest threat is the Fed because the Fed is raising rates too fast", Trump said.

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When asked if he thought the President should be weighing in on the agencies, he replied: "I don't think he should be making comments on any federal agency".

"My focus is controlling the controllable", said Powell at The Atlantic Festival in Washington.

The US Treasury Department has decided not to brand China a currency manipulator but kept it on a watch list with other countries, including Germany, Japan, Switzerland, India and Korea. I'm not blaming anybody, I put him there.

Quarles walked a middle line between his colleagues and Trump, laying out a case for why the Fed could move more slowly, suggesting that he's optimistic the administration's policy could boost growth, and defending Fed independence - but also noting that it's not a historical anomaly for presidents to criticize the central bank.

South Dakota Senator Mike Rounds says he thinks the Fed is on the right course...

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