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Fed's monetary policy 'about right,' no more hikes needed -Bullard

20 Octobre 2018

However, Quarles suggested that since the overheating risks could be balanced by the outlook of stronger growth, the Fed doesn't need to raise rates too fast. More importantly, it will give the Fed some cushion to cut the interest rate in the future if the economy dips into a recession. It is largely expected to hike once more before the year end. By "him", Trump referred to Fed Chairman Jerome Powell.

The ascending reconciliation to the United States interest rates is too swift declared Trump, because inflation is very low.

Federal Reserve is the most important central bank in the world. Because - you look at the last inflation numbers, they're very low.

President Donald Trump has criticized the Federal Reserve for raising its benchmark interest rates for the third time this year.

"I think ... the Fed is making a mistake".

"These pose major challenges to achieving fairer and more balanced trade and we will continue to monitor and review China's currency practices, including through ongoing discussions with the People's Bank of China".

"Overall, nothing here to change our view", said Paul Ashworth, chief USA economist at Capital Economics.

"If there are emergencies that affect the exchange rate, the Treasury has this bank account to the New York Fed that they're allowed to use to send trade orders through the Fed", Richardson explained.

Trump has recently waged a sustained campaign against the Fed, calling their interest rate hikes "crazy" and "loco". "I put (Powell) there".

Alan Greenspan, a legendary Fed Chairman who served under four different presidents from 1987 to 2006 said that it was all too common during his years as well to receive recommendations or insight from the president.

"There was a pretty well-formed expectation that it would more likely showcase a Fed that's more confident and assertive debating tighter policy", said Richard Franulovich, head of FX strategy at Westpac Banking Corp in NY.

Powell senior special adviser Jon Faust foreshadowed the difficulties the Federal Open Market Committee might face in an article he wrote in December when at Johns Hopkins University.

Trump's concern is that a steady march of rate hikes will serve to the slow economy down just as the administration is nearing its goal of 3% economic growth this year.

"When the risks from share-backed loans are mitigated and eliminated properly, the yuan is likely to be allowed to drop through the 7.00 mark particularly if the dollar strengthens across the board and if the US-China tensions escalate further", Gao Qi, emerging market Asia currency strategist at Scotiabank said.

As a result, Bullard said the federal funds rate should stay where it is now, at a range of between 2.00 percent and 2.25 percent, until something clearly changes for better or worse.

The minutes did note concerns about the impact of Trump's get-tough trade policies, citing business contacts who expressed worries about lost markets and rising prices for steel and aluminum.

Rounds says worldwide factors, like tariffs also play into the economic uncertainty...

Fed's monetary policy 'about right,' no more hikes needed -Bullard