Fed Reserve defends pace of interest rate rise amid Trump’s attacks
27 August, 2018, 01:35 | Author: Darnell Patrick
The U.S. dollar weakened sharply, providing support for dollar-denominated gold prices, as Powell, at the annual Fed symposium said gradual U.S. interest-rate hikes remain appropriate and there was no risk to the economy overheating.
Strong Performance The Fed chairman said he expected the economy's "strong performance will continue" and as a result the Fed's "gradual process of normalization remains appropriate".
After having kept its key policy rate near zero for seven years to help lift the economy out of the Great Recession, the Fed has raised rates seven times, most recently in March and June this year.
Powell cited former Fed Chairman Alan Greenspan's decision to not raise rates during the mid-1990s as unemployment decreased and growth expanded, but inflation stayed largely steady.
"I see the current path of gradually raising interest rates as the (Federal Open Market Committee's) approach to taking seriously both of these risks", said Powell.
To start with, the September and December rate hikes were never off the table and the markets have pretty much factored in two more rate hikes this year.
Similarly, Esther George, head of the Kansas City Fed, said she expects the central bank to raise rates twice more this year, with more next year. "We are setting policy to do what monetary policy can do to support continued growth, a strong labour market and inflation near 2 per cent".
The Fed's policy rate stands in a range of 1.75 percent to 2 percent.
If Powell sounds confident that the economy won't be unduly hurt by the administration's tariffs on imports and the retaliatory tariffs they have provoked or by a currency crisis in developing markets, Fed watchers will likely conclude that the central bank will maintain a course of gradual rate hikes to reflect a robust economy.
"Treasuries have returned to the lower end of their recent (yield) ranges and I think that speaks to the heavy short positioning, suggesting that it's easier for the market to rally than it is to sell off", said Jonathan Cohn, an interest rate strategist at Credit Suisse in NY.
"The dollar's reaction is a part of a narrative that was established earlier this week, one that we saw in the minutes, with respect to the Fed making progress toward neutral", Issa said.
European stocks look set to open largely unchanged on Friday as trade talks between the US and China ended without progress, raising concerns that a prolonged trade spat could hurt global growth.
White House audio recordings show that President Richard Nixon pressured then-Fed Chairman Arthur Burns to keep interest rates low to boost Nixon's re-election chances in 1972. Trump was once again scolded by the press for criticizing the Fed a second time.
In pictures released by the NOAA , the phenomenon known as "stadium effect" can be seen inside the eye of Hurricane Lane. Tornadoes and large waterspouts will also be possible, mainly along and to the right of the track of the hurricane.
He touched his head several times and eventually walked off the field under his own power with trainers and team doctors. Roethlisberger is 36 years old, takes a lot of hits and hasn't played a full season since 2016.
As you could probably guess, just like the playoffs in any other sports, the field from here on out will only get stronger. Instead Woods took the moment to quietly reflect on what this past year has meant to him.
Mueller's office has not yet filed a sentencing memo in the case of Trump's former national security adviser, Michael Flynn. Trump himself tweeted. calling Papadopoulos a "young, low level volunteer named George.'".
Grande said Franklin had called her because she wanted the young singer to listen to music by Franklin's nephew or grandson. Two years ago, Franklin serenaded donors to Hillary Clinton's presidential campaign in a suburb of Detroit .
An explanation could be that some lawmakers fear they will be punished by voters if they put their names to dumping Mr. He also thanked deputy prime minister Julie Bishop for being a "rockstar" for the Liberal Party as a foreign minister.
Criticizing the news media - for underplaying or overplaying stories, for getting something wrong - is entirely right. You've heard President Trump use the term "fake news" when describing the work of the capitol press corps.
That relationship crumbled over the last few months, especially after a federal raid of his office, hotel and home in April. Correspondents say it is unlikely Mr Trump's opponents would try to impeach him before November's mid-term elections.