Downgrading its economic outlook, the Federal Reserve raised its key interest rate Wednesday for a fourth time this year but lowered its forecast to two hikes in 2019 amid the recent stock market selloff and uncertain growth prospects.
As expected, the Fed raised the federal funds rate -- which is what banks charge each other for overnight loans – by a quarter point to a range of 2.25 percent to 2.5 percent.
But in a statement after a two-day meeting, the Fed newly acknowledged a slowdown in global economic growth, the stock market’s plunge and a strong dollar that’s making U.S. exports more expensive for overseas customers.
Trump replaced Janet Yellen, a dovish Federal Reserve chief (whose policies he liked), with hawkish Jerome Powell, whose policies he dislikes. Rates have gone higher, and it is the proximate result of the president’s appointment.
There is no one else to blame for this mistake but the president. Powell’s leanings were well known; so too were those of Trump’s appointment for vice chairman, Richard Clarida.
This self-inflicted error is perplexing: When Trump was running for office, he berated Yellen, saying she “should be ashamed that rates were so low.” We have since found out that he did not re-appoint Yellen because he felt that, at 5-foot, 3-inches, she was “too short” to run the central bank. This has to be one of the great unforced mistakes in the postwar history of U.S. monetary policy.
Periodic reminder:
https://www.usatoday.com/story/money/2018/12/19/fed-decision-interest-rates/2306246002/
The Federal Reserve sees stormy skies ahead, too. Let the discussion begin as to what's causing them.
The fed either has complete blinders on and ignoring the warning signs are by raising interest rates the economy is not near a recession the many bears and doom and gloomers have been predicting.
https://www.usatoday.com/story/money/2018/12/19/fed-decision-interest-rates/2306246002/
The Federal Reserve sees stormy skies ahead, too. Let the discussion begin as to what's causing them.
It makes a person wonder what Powell cares about...the US economy? Or the global economy?
Careful, comrade, questioning a Trump appointment might get you tagged as an enemy of the people.
I've never said Trump was perfect.
Heck, maybe Powell fed Trump a line of BS and Trump was stupid enough to believe him.
But what's important is what Powell is doing to stifle the US economy.
We didn't do enough to fix the last big event, so here we are again about 10 years later.https://www.usatoday.com/story/money/2018/12/19/fed-decision-interest-rates/2306246002/
The Federal Reserve sees stormy skies ahead, too. Let the discussion begin as to what's causing them.
https://www.usatoday.com/story/money/2018/12/19/fed-decision-interest-rates/2306246002/
The Federal Reserve sees stormy skies ahead, too. Let the discussion begin as to what's causing them.
Periodic reminder:
It's never his fault.Via tweets, Trump is positioning the Fed as the scapegoat for any economy woes leading up to the 2020 election.
What?
I agreed with the past rate hikes by Powell, but given the yield curve right now I would have waited for at least the next meeting to raise them, keeping the rate the same at this time
Via tweets, Trump is positioning the Fed as the scapegoat for any economy woes leading up to the 2020 election.
"But in a statement after a two-day meeting, the Fed newly acknowledged a slowdown in global economic growth, the stock market’s plunge and a strong dollar that’s making U.S. exports more expensive for overseas customers. "
And the stock market drops over 300 points minutes after the decision. (not that it really matters)
It makes a person wonder what Powell cares about...the US economy? Or the global economy?
We didn't do enough to fix the last big event, so here we are again about 10 years later.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?