Is The Fed Trying To Tank The Trump Economy Before The Midterms?
Is The Fed Trying To Tank The Trump Economy Before The Midterms?
The Federal Reserve is not pleasing President Trump with its policy on interest rate increasesGETTY IMAGES
13 October, 2018, 01:12
Toronto's main index lost 336.65 points or 2.1 per cent, to 15,517.40.
As Hurricane Michael pummeled Florida, Wall Street was battered by storms as well, with the Dow shedding about 830 points, in the biggest fall since February, to close the day at 25,498.74.
The S&P 500 closed down 2.1 per cent after its sixth losing session in a row. The Dow Jones Industrial Averagemore than doubled under Presidents Reagan and Obama, more than tripled under President Clinton and fell 27% under President George W. Bush.
Yet there is little evidence that rates are too tight given current economic conditions, as shown by the following three charts.
Trump's latest attack on the USA central bank appeared to blame the Federal Reserve for a stock rout that market analysts mostly attributed to fresh concern about his trade war with China. "It's so tight. I think the Fed has gone insane", Trump told reporters shortly after markets closed, as he arrived in Erie, Pennsylvania for a rally.
I don't think the Fed is on the wrong path.
The President said this week he prefers lower interest rates but added he would not speak directly to his Fed chairman appointee Jerome Powell, preferring instead to remain hands-off.
Mr Trump also told Fox News the Chinese had lived too well for too long.
Wall Street stocks plummeted Wednesday amid worries about surging USA interest rates and the impact of trade disputes, as President Donald Trump blamed the Federal Reserve, saying it had "gone insane".
A Fed official said the central bank would not comment on the president's remarks.
"I do worry about bringing the Fed into what is really a pretty toxic political environment and undermining confidence in the Fed", Kohn said Thursday in a CNBC interview. 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.
Trump has repeatedly touted the spate of Wall Street records as proof of the success of his economic program, including his confrontational trade strategy, and criticized the Fed for raising the benchmark interest rate - three times this year - saying it would undermines his efforts.
Mr Trump is correct in saying that rising interest rates tend to strengthen the U.S. dollar, as investors return funds to the United States in search of higher returns and safer investments.
Meanwhile, trade conflicts raise costs for companies, which could hit the bottom line in quarterly earnings - something analysts said helped prompt Wednesday's sell-off. "The president is not dictating policy to the Fed.They are independent".
Powell has brushed off the comments, saying officials do not pay attention to politics. "Interest rates are still accommodative but we are gradually moving to a place where they will be neutral", he said, adding that the U.S. economy was a "long way from neutral (interest rates) at this point, probably".
'And we just try to do the right thing for the medium and longer term for the country'.
After making its Indian debut in Hyderabad, Ikea is now set to launch its first e-commerce store in Mumbai by 2019. Ikea is known for its flat packs, but sales are far from flat - at least at new stores, like this one in Madrid.
Rights groups say detainees are made to swear loyalty to President Xi Jinping and criticise or renounce their faith. The Uighurs are Turkic-speaking Muslims who make up about half of Xinjiang's 22 million-strong population.
This, however, would raise the prospect of increased regulation checks between Northern Ireland and the rest of the UK. A negotiated Brexit , and Theresa May's survival, hinge on whether her ministers and MPs can live with this paradox.
I spoke to a few producers and the director and to J.K. and had long conversations basically about the Grindelwald character. Depp also talked more generally about how he came by the role, and what we can expect from the character.
As per the company, they have now fully fixed the bug issue, and they have given the details about it in the public domain. We routinely engage with security researchers from around the world to ensure WhatsApp remains safe and reliable.
President Trump added he could do a lot more if he wanted to, but said he would prefer Beijing come to the negotiating table. The volume of exports from China to Russian Federation has grown by nearly 13 percent, exceeding $35 billion.
Crocodile attacks claimed 14 lives in the Northern Territory between 2005 and 2014, according to research published a year ago . NT WorkSafe said it had been notified that the ranger had been taken by a crocodile approximately 206km south west of Yirrkala.
It considers that "Turkey will allow her to continue to operate in the north-western syrian as it will be low profile". Idlib is the only large region in Syria which remains under the control of illegal armed groups.
That meant that not only had she committed adultery, but it had happened five years ago and had remained a secret ever since. The photograph is one of a long line of unintentionally freakish images taken for Google Maps and Google Street View.
The lavish ceremony echoed Prince Harry and Meghan Markle's wedding just five months ago in the same location. The duchess turned to her wedding designer to see Princess Eugenie tie the knot.
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Labour MP Margaret Hodge said it was "absolutely outrageous that Facebook's United Kingdom tax bill is 0.62% of their revenue". Its profits were reduced by £759 million in sales and £444 million in unexplained "administrative expenses".
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