Trump says Fed is 'out of control'

Share

"I think the Fed is far too stringent, and they're making a mistake and it's not right".

However, higher U.S. interests rates have also helped send emerging market currencies into a tailspin, as countries that borrowed heavily in dollars race to pay back debt.

"Our objective would be that the [language on} currency issues we would like to include in future trade agreements", he said. If Trump goes further and tries to remove Powell or otherwise influence Fed policy, it could cause him bigger problems. The second day he criticizes the Federal reserve system, calling it a policy of "aggressive" and solutions are "crazy".

Trump on Wednesday slammed the Fed as "going loco" for its interest-rate increases this year in comments hours after the worst usa stock market selloff since February.

Senate deal confirms 15 more Trump judges
The Republicans didn't like some of his rulings, so they were trying to kick him off the court - basically for political reasons. The Post says the "groundwork to cast Democrats as angry and out-of-control has been months in the making".

So, with higher interest rates and the higher cost of fuel at this point in time, the Fed had created a situation where the market can go into hibernation and just stay where it is for the next few years.

The rise in longer-term interest rates is driven mainly not by a rise in inflation expectations, but rather by a rise in investors' expectations for what the Fed will do and for how much compensation bond investors are demanding in lending over long time horizons. In the past he's hinted at his displeasure with interest rate hikes, but this week bluntly proclaimed "there is no reason for them to do it and I'm not happy about it". But he downplayed the first major drop in months, saying it was a "correction that we've been waiting for".

"I don't think it's that at all", he said.

The average rate for a 30-year fixed-rate mortgage rose to 4.7 percent last week, from below 4 percent at the end of 2017, according to data from Freddie Mac.

US Gulf Coast bracing for 'monstrous' Hurricane Michael
With Michael's winds projected to be even stronger than that, Wakulla County residents were urged to evacuate inland. The hurricane was forecast to deliver as much as 1 foot (30 cm) of rain in parts of Florida, Georgia and SC .

During panel discussions at the International Monetary Fund's (IMF) annual meetings in Bali, Indonesia, yesterday, South African Reserve Bank governor Lesetja Kganyago stressed the importance of central bank independence when he was asked whether Trump's comments demean the integrity of the institutions.

The tariffs Trump imposed on China and other trading partners on key goods like steel and aluminum, and Beijing's retaliation against USA products, have raised prices for American companies, which is expected to start to hurt corporate profits and could dampen investment as well. He also said he was not going to fire Fed Chairman Jerome Powell.

Powell's goal is to extend the second-longest USA economic expansion on record by moving interest rates up just quickly enough to prevent overheating, but not so rapidly that the central bank chokes off growth. But we have actually - we're paying interest. He also expects the Fed to overshoot its 2% inflation target by "a bit" but added, "I don't see any signs of greater inflationary pressures on the horizon".

The yield on 10-year U.S. Treasury bonds reached a seven-year high this week of 3.25 percent (it receded some Wednesday as stocks dropped), up from 2.82 percent in August.

George W. Bush’s daughter, Barbara, tied the knot over the weekend
Bush , Barbara Bush , Craig Coyne , Barbara Bush and Poppy Louise Hager at Barbara and Craig's wedding on October 7. The bride wore an ivory silk crepe gown by Vera Wang , according to a statement from the office of George W.

Trump was briefed on the market turmoil earlier in the day, a White House official said. The Fed under his hand-picked chairman Powell has been gradually raising rates as the economy has strengthened to prevent a run-up in inflation. If a normal president had blamed an "out of control" Fed for tanking markets under these circumstances, investors would have been disturbed: After all, it might mean something. "Under the Obama administration, you had a lot of help because they had very little interest", Trump said. Meanwhile, Ford says that it anticipates about twenty thousand in layoffs and $1 billion in losses thanks to Trump's tariffs.

Share