Fed officials suggest rates likely to rise soon, worry about trade war

Fed officials suggest rates likely to rise soon, worry about trade war

The benchmark U.S. interest rate, which plays a large role in setting borrowing costs for mortgages, credit cards, small business and auto loans, was set at a range of 0.5 per cent to 0.75 per cent when Trump was sworn in.

Investec economist Annabel Bishop said in a note that the Bank could strike a more hawkish tone during its scheduled meeting in September, meaning that it could flag potential increases in rates in future meetings, given the volatility in the rand.

The president spoke to Reuters in an exclusive interview, the newswire said. "I'm not thrilled." Mr. Trump, in an interview, added "I should be given more help by the Fed" through more accomodative monetary policy.

Recent presidents have largely avoided criticising the Fed, trying to preserve the bank's independence and its credibility with financial markets, foreign governments and the public.

The minutes also gave an indication the Fed was preparing to debate once again how best to implement its monetary policy, including what to do with its swollen balance sheet.

The central bank is created to be independent from political interference. The Fed has raised rates twice this year. 1 meeting on Wednesday, has been raising rates gradually since 2015 and is now concerned the economy is so strong that inflation could rise persistently above its 2 percent target.

The Federal Reserve last raised interest rates in June, when it signaled that it could raise them two more times this year.

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But that stands in contrast with the president's own words, which are often very critical of Powell and suggest the Fed should be moving in a different direction. That's the highest in 11 years.

U.S. businesses have a message for the Trump administration: New tariffs on $200 billion of Chinese imports will force Americans to pay more for items they use throughout their daily lives, from cradles to first bicycles and wedding dresses to coffins.

Donald Trump chose Jerome Powell past year to head the USA central bank, promoting a soft-spoken centrist to replace Janet Yellen. The president does choose members of the policy-setting Fed Board, and in addition to Powell, he has appointed one Fed governor and nominated three others.

"I am not happy about it". "I'll let you know in seven years".

Asked by Reuters whether he believes in the independence of the Fed, the president said, "I believe in the Fed doing what's good for the country".

The Fed, which released the readout from its July 31-Aug.

"We're going to do our business in a way that's strictly non-political, without taking political issues into consideration, and that carries out the mandate Congress has given us", he said.

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