ibusinesslines.com
ibusinesslines.com December 17, 2018


President Trump vs. Jerome Powell: Trump's problematic messaging to the Federal Reserve

29 November 2018, 10:45 | Kelvin Horton

Report: Trump Says 'Not Even a Little Bit Happy' with Fed's Powell

U.S. President Donald Trump walks on the South Lawn after returning to the White House in the early morning hours from a trip to Mississippi

With Powell now out of the way, the market is looking for any hopeful signals on trade from a meeting between the U.S. and Chinese presidents that will take place at the Group of 20 summit in Buenos Aires this weekend.

Powell and other officials have repeatedly dismissed the unprecedented political attacks from Trump, saying they have no impact on policy deliberations of the independent central bank.

Since his previous comments, that additional interest rates increases could be expected, stocks indices have fallen sharply, credit markets have shown indications of stress and investors are holding back, expecting the Fed to slow its interest rate increase. "I am pleased to say that our economy is now close to both of those objectives", Powell said in an appearance at the Economic Club of NY. For example "risky" debt held by companies, either junk bonds or leveraged loans, has surged in recent months and now tops $2 trillion.

Those decisions have drawn rebukes from Trump, who wants the Fed to focus on economic growth.

Stocks surged following Federal Reserve chair Jerome Powell's comments at the Economic Club of NY during which he addressed risk factors to the health of the economy, softened his tone on monetary policy, and offered a fairly reassuring check-up on the economy on the heels of sharp disapproval from President Trump. In his latest comments Tuesday, Trump blamed the Fed not only for the stock market's declines but also for General Motors' announcement this week of jobs cuts and plant closings.

A day after President Donald Trump's latest attack on the U.S. central bank, Federal Reserve chief Jerome Powell hinted Wednesday (Nov 28) the key lending rate would move higher but said there was no preset course.

Trump adds that he is "not even a little bit happy" with Fed Chairman Jay Powell, whom he selected previous year.

"So far, I'm not even a little bit happy with my selection of [Jerome Powell]".


"I think the president got to him", Geltrude said, adding that Trump acted like a baseball team's manager berating the umpire for a bad call.

"I'm doing deals, and I'm not being accommodated by the Fed", Trump said during the interview with the Washington Post. Simply stated, the Fed chief's remarks strongly indicated the central bank won't be raising its federal-funds rate almost as many times in 2019 as the "dot plot" of Federal Open Market Committee members' projections had implied.

However, many economists expect that pace to slow next year as the effects of the stimulus fade.

Finally, turn up the heat under that mixture by denouncing your central bank and making veiled threats at its boss for raising interest rates to keep a lid on the inflationary forces that you're eagerly stoking.

In his speech, Mr Powell said he viewed gradual increases as the best way to balance the risks of causing problems by raising rates too fast or too slowly.

KA-POWELL: In a speech to the Economic Club of New York, Powell said the financial system and markets appear far sturdier than they did before the 2008 crisis.

"As you pump up the interest rates, more and more people are carrying enormous servicing costs which they can't maintain, credit growth will stagnate, and the economy will go into a recession again".

Earlier Wednesday, the Fed released its first Financial Stability Report.



Other News

Trending Now

Under his eye: Margaret Atwood to publish sequel to The Handmaid’s Tale
The novel ambiguously ended with Offred being placed in a van that will possibly deliver her to freedom outside Gilead. Canadian author Margaret Atwood is penning a sequel to one of her best-known books, The Handmaid's Tale .

Kante must stick to role in Chelsea midfield, says Sarri
First of all I want to see a reaction, but I want to see a reaction in the next Premier League match as well. He attacked too much the other box. "I think we will be able to recover him for the game on Sunday".

Jurgen Klopp rates Joe Gomez's chances of facing PSG
On Thursday Mane agreed a new deal which will take him up to 2023, matching the length of contracts Firmino and Salah. Javi Gracia's well-organised outfit frustrated Klopp's men until Salah struck.

Woman, Baby Daughter Killed By Grizzly Bear At Remote Cabin
Jones said Theoret and her family had been animal trapping at Einarson Lake for the past three months. Mr Roesholt was returning from laying traps for game around 15:00 local time (23:00 GMT) on Monday.

Journalist Shujaat Bukhari’s killer Naveed Jatt killed in Kashmir’s Budgam
When he was arrested in 2014, Jatt had reportedly claimed responsibility of killing paramilitary forces and policemen. His name had surfaced as a suspect in the killing of Bukhari on June 14 outside his office in Srinagar .

Melania Trump fires back at Christmas decoration critics
Bolling applauded the first lady for the "empathy and compassion" she has toward the issue of the opioid crisis. With a smile, she added: "I think they look fantastic". "In real life, they look even more attractive ".

Google rolling out student pricing for YouTube Premium and Music Premium
But with two billion users across the globe, YouTube has a huge audience for ad-supported content. YouTube has launched student plans for YouTube Music and YouTube Premium .