Markets

SD Senator Mike Rounds; Federal Reserve Right to Raise Rates

SD Senator Mike Rounds; Federal Reserve Right to Raise Rates

President Donald Trump said this week the Federal Reserve is his "biggest threat", as he escalated his criticism of the central bank's monetary tightening.

Quarles walked a middle line between his colleagues and Trump, laying out a case for why the Fed could move more slowly, suggesting that he's optimistic the administration's policy could boost growth, and defending Fed independence - but also noting that it's not a historical anomaly for presidents to criticize the central bank.

The Fed is contending with how to manage one of the longest economic expansions on record without triggering a recession.

"Anything that raises the price of a good doesn't make sense for our economy, even if they're paying it to the government as a tariff", Cohen said.

During a Fox Business Network interview, Trump said the biggest problem facing the U.S. economy and stock market was the Fed's path of interest-rate hikes under Chairman Jerome Powell.

Meanwhile, the Fed took notice of clouds forming on the horizon.

The discussion, revealed Wednesday in minutes of the Fed's September 25-26 policy meeting, showed that a few participants thought the Fed's key rate would need to "become modestly restrictive for a time" to prevent inflation from climbing too high. The central bank is nominally independent of the executive branch, though US presidents appoint the bankers to their posts.

Pompeo sees 'serious commitment' from Saudis on missing journalist
If Saudi Arabia does not become more transparent, various consequences will be very heavy for the future of the country. The search, however, did not happen overnight and reasons for that weren't immediately clear.

While the central bank's structure insulates it from day-to-day politics, there are levers for exerting presidential influence or for bypassing the Fed altogether.

So far this year, policymakers have already voted to hike short-term interest rates three times, and are poised to do so again in December, staying the course they laid out late last year. He has said the economy is strong and can afford to pay higher interest.

"All participants expressed the view that it would be appropriate for the committee to continue its gradual approach to policy firming by raising the target range for the federal funds rate", according to the minutes. As other Fed governors retire, the president has the opportunity to fill more spots.

This would move United States interest rates slightly above what policymakers say is "neutral" - that is, neither slowing nor speeding the economy - but some participants said the Fed may need to go even further than that.

Inflation, however, remains controlled, and Bullard has focused on that and several other aspects of the economy in recent years to argue that the Fed should basically stop in place until something changes.

Rounds says the Fed didn't have many tools left to kick start the economy if needed...

USA homebuilding dropped more than expected in September as construction activity in the South fell by the most in almost three years, likely held down by Hurricane Florence. Traders of futures contracts tied to the Fed's policy rate see rates topping out at about 3 percent.


  • Sunrise: Kochie Just Made A Slavery Joke About Usain Bolt

    Sunrise: Kochie Just Made A Slavery Joke About Usain Bolt

    The notice requested blood and urine samples and appears to have been issued by Football Federation Australia. I haven't signed for a club yet?' They told her I'm an elite athlete so I have to get tested.
    Federer Stunned By 13th Seed Coric In Shanghai Semis

    Federer Stunned By 13th Seed Coric In Shanghai Semis

    Roger Federer was stretched to three sets for a second consecutive match to reach the Shanghai Masters quarterfinals on Thursday. Open, is now world number three, but could move up a spot if he books a place in Sunday's final.
    Musk says Murdoch Tesla tilt incorrect

    Musk says Murdoch Tesla tilt incorrect

    Also today, The Verge has an interesting view on the Tesla chairman speculation. Musk described the diver as a pedophile in a tweet that has since been deleted.
  • Trump lashes out at Warren over DNA test, calls her 'phony!'

    Trump lashes out at Warren over DNA test, calls her 'phony!'

    She did so because President Trump has frequently her for claiming Native American heritage without evidence. Then, a Stanford University genetics professor and adviser for Ancestry.com and 23andMe analyzes her test.
    The US President praised China threat higher than the Russian

    The US President praised China threat higher than the Russian

    But it could very well go back. "They definitely haven't done a nuclear test because you know about them real fast", he said . I mean, I don't-" Trump began in response. "But I think China meddled too". "I didn't want to do it right out of the box".
    Cologne hostage taker ‘under control,’ one hostage with minor injuries

    Cologne hostage taker ‘under control,’ one hostage with minor injuries

    The police said in a subsequent tweet that there had been no shots fired and there were no immediate reports of casualties. Deutsche Bahn, who operates the railroad, tweeted that trains in the station are delayed and the station is blocked.
  • Raptors down Cavs in season opener

    Raptors down Cavs in season opener

    Leonard, OG Anunoby, Green, Serge Ibaka and Lowry are the likely starters for the Raptors. "He's a great player". Told this, Irving said, "Yeah, there's nothing like dominating on the road.
    O'Rourke attacks 'Lyin' Ted Cruz as US Senate debate gets personal

    O'Rourke attacks 'Lyin' Ted Cruz as US Senate debate gets personal

    Bernie Sanders and supported socialized medicine that would cost trillions and require sky-high tax increases. The president carried Texas by a relatively small nine points in 2016.
    U.S. Must ‘Push Harder for the Truth’ About Journalist Jamal Khashoggi

    U.S. Must ‘Push Harder for the Truth’ About Journalist Jamal Khashoggi

    Secretary of State Mike Pompeo is meeting now with Saudi King Salman over the disappearance of Saudi writer Jamal Khashoggi . Permission apparently came after a late Sunday night call between King Salman and Turkish President Recep Tayyip Erdogan.
  • 13 dead, 50 wounded in explosion at Russia's Crimean college

    13 dead, 50 wounded in explosion at Russia's Crimean college

    The Investigative Committee, Russia's top crime investigation agency, eventually said all the victims died of gunshot wounds. The committee's spokesman Andrei Przhezdomsky said sappers are inspecting the building for other explosive devices.
    YouTube back online after outage

    YouTube back online after outage

    YouTube has had similar issues in the past, but they aren't common and rarely last as long as Tuesday's - more than 50 minutes. In July, YouTube TV suffered a nationwide outage during the 2018 World Cup semifinal match between England and Croatia.
    Saudis said ready to concede writer was slain in botched interrogation

    Saudis said ready to concede writer was slain in botched interrogation

    According to the journalist's fiancee, he was invited to the Saudi consulate in Istanbul but never left the consulate building. Rubio's comments come a day after Trump vowed "severe punishment" for the United States ally if they were found responsible.