News Regulators 

Trump Takes a Rare Presidential Swipe at the Fed

“If the Fed raises rates too quickly, it risks slowing growth at a time when wages have stagnated for most American workers, after accounting for inflation” reports nytimes.com. Historically, presidents have preferred lower rates, because faster economic growth typically helps incumbents win re-election.But if it raises rates too slowly, some Fed officials fear the economy could “overheat” and ignite a rapid spiral of price increases that could eventually prompt a recession.But as the economy finally gains steam after years of sluggish growth in the wake of the Great Recession, the…

Read More
News Regulators 

Trump’s stunning comments about the Federal Reserve could actually backfire

“But JPMorgan economist Michael Feroli advanced an interesting alternate theory: Trump’s comments may inspire the Fed to go the other direction” writes Bob Bryan for businessinsider.com. “Even if the remaining nominee were a ‘like-minded low interest rate guy,’ that person would be but one out of a Committee of 12.”.  Source: businessinsider.com Share This:

Read More
News Regulators 

White House: Trump is not interfering with Fed policy decisions

“The White House clarified statements made by President Donald Trump to CNBC about the Federal Reserve and its decision to raise interest rates this year” writes Fred Imbert for cnbc.com. As he said he considers the Federal Reserve Board Chair Jerome Powell a very good man and that he is not interfering with Fed policy decisions. … Source: cnbc.com Share This:

Read More
News Regulators 

Dollar falls and Treasury yields near lows as Trump criticizes Fed 

“The dollar fell and Treasury yields edged lower after President Donald Trump said he disagreed with Fed policy on interest rates and objected to a strong dollar” writes Patti Domm for cnbc.com. Prior to his election, going back to Robert Rubin, President Bill Clinton’s Treasury secretary, the policy has been for a strong dollar.Trump has commented on dollar strength in the past.The dollar has been rising this week following comments from Fed Chairman Jerome Powell that the economy was strong and the Fed would keep raising rates. Source: cnbc.com Share This:

Read More
News Regulators 

Trump lays into the Fed, says he’s ‘not thrilled’ about interest rate hikes

“Presidents rarely intercede when it comes to the Fed, which sets the benchmark interest rate that flows through to many types of consumer debt” writes Jeff Cox for cnbc.com. Fed officials, including Chairman Jerome Powell, have raised interest rates twice this year and have pointed to two more before the end of 2018.Former Dallas Fed President Richard Fisher told CNBC that Trump is out of line. “One of the hallmarks of our great American economy is preserving the independence of the Federal Reserve.ET on “Squawk Box.” “Because we go up…

Read More
News Regulators 

Trump’s Fed criticism is nearly without precedent in US history

“President Donald Trump’s move to criticize the Federal Reserve is almost without precedent in a nation that places a high priority on the independence of monetary policy” writes unknown author for cnbc.com. Almost all of Trump’s predecessors steered clear of Fed critiques in the interest of making sure that interest rates were set to whatever was best for the economy and not to boost anyone’s political fortunes.Concerns about too much liquidity in the economy were “just bulls—,” the president added. That in turn pushed the economy into recession but also…

Read More
News Regulators 

LARRY SUMMERS: Trump just took another step toward turning the US into a ‘banana republic’

“Just recently, White House economic adviser Larry Kudlow told Fox Business Network he hoped the Fed would raise interest rates “very slowly.”” writes Pedro Nicolaci Da for businessinsider.com. The former White House economist is a frequent critic of Trump’s, having previously railed against everything from his infrastructure plan to what Summers saw as an ill-timed and poorly-conceived tax cut plan. Source: businessinsider.com Share This:

Read More
News Regulators 

Trump criticizes Federal Reserve, breaking long-standing practice

“Despite nearly a decade of unusually low interest rates, and other extraordinary Fed action, inflation has remained tame” writes David Lynch for washingtonpost.com. Republicans have for years criticized the Fed for keeping interest rates too low, which they said would lead to runaway inflation.Trump’s desire to keep rates low is a major change in GOP thinking on the Fed.By adding fuel to an economy that already was at full employment, Trump has contributed to the situation he is criticizing. Source: washingtonpost.com Share This:

Read More
News Regulators 

President lays into Fed; ‘Not thrilled’ with rate hikes…

“Presidents rarely intercede when it comes to the Fed, which sets the benchmark interest rate that flows through to many types of consumer debt” writes Jeff Cox for cnbc.com. Former Dallas Fed President Richard Fisher told CNBC that Trump is out of line. “One of the hallmarks of our great American economy is preserving the independence of the Federal Reserve.Fed officials, including Chairman Jerome Powell, have raised interest rates twice this year and have pointed to two more before the end of 2018.In a stinging and historically rare criticism, President…

Read More
News Regulators 

Dow retains afternoon slump as Trump says he isn’t ‘thrilled’ with Fed rate hikes

“The U.S. dollar, as gauged by the ICE U.S. Dollar Index DXY, -0.01% went from a gain of 0.4% before the president’s remarks to down 0.1% as of 1.24 p.m” writes Mark Decambre for marketwatch.com. However, asset moves were the most pronounced in the dollar and in benchmark 10-year Treasury rates, which are the most sensitive to rate-hike expectations.Trump said he wasn’t “thrilled” with the central bank’s interest-rate raises which have pushed the federal-funds rate to a range of 1.75% and 2%, with further hikes penciled in possibly for September…

Read More