What Trump Says Is the Biggest Threat to His Presidency

Cornelia Mascio
Ottobre 19, 2018

While that scenario would boost longer-term growth and allow the Fed to avoid aggressive rate hikes, Mr. Quarles also said the Fed must be vigilant for overheating that may not be apparent in inflation readings, which are roughly at a 2-per-cent target.

But Bullard has taken a different tack, arguing that the Fed rate hikes of the past roughly two years have only been possible because the economy outperformed the central bank's outlook.

On the other hand, while risks were 'roughly balanced, ' some Fed members said instability in emerging economies - many of which are heavily indebted and vulnerable when U.S. rates rise - could 'spread more broadly through the global economy and financial markets'.

The Federal Reserve's steady increases in benchmark lending rates have infuriated President Donald Trump, who recently called the bank's policymakers "crazy", "loco" and his "biggest threat".

US stock prices recovered some earlier losses but were still down for the day following the minutes. U.S. Treasury yields were little changed.

Though the minutes did not refer to any of Trump's criticism, its message of further rate increases suggests that policymakers are not fazed by it.

This would move USA interest rates slightly above what policymakers say is "neutral" - that is, neither slowing nor speeding the economy - but some participants said the Fed may need to go even further than that. The U.S. economy is still "in a good spot", he said, and there are reasons to be optimistic about the economy's potential capacity.

Presidents can only remove a Fed board member "for cause" beyond policy disagreements.

The US dollar has strengthened against the yuan in recent months, prompting speculation that this month's report might contain formal claims of manipulation.

They also noted that some businesses said they were investing less in the energy sector due to the imposition of import tariffs on steel and aluminum, part of an array of trade policy conflicts the Trump administration has pursued.

A decade on from the start of the financial crisis the economy is growing at a faster rate than expected, inflation is firming and the unemployment rate remains at a record low, the Fed's record showed. Trump says he knows the Fed is independent, but he thinks interest rates are rising too quickly.

The minutes showed that "almost all" policymakers agreed it was time to stop saying they were stimulating the economy.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE