Fed: US economy is growing at a moderate pace with positive outlook

[yota691]

Quote

In other words.... We need more money to give the banks...

Nope...Not how it works...During Obama term when the Fed's made everything so pretty and comfortable, after that Obama bailout to the banks and the Stock Markets, Insurance Companies and Auto Industry, Caterpillar. etc the list is so long. it was like a payout to all these cronies to just make everything go away for 8 years, don't make Obama and his scandal free administration look bad. During those 8 years the banks kept everything at a fix rate next to nothing..Trump show up puts a match to the economy with his administration with deregulation, tax cuts, Stock Market Breaks heights never seen before. Unemployment at all time low, folks are working again Now the banks are doing variable rate that cost more to borrow for anything. Because the Fed's raise the rate's....These moves by the Never Trumpers Hate Everything America Party have damage which effect people lives and money because they want to make Trump look bad 24/7. I would say that is Treasonous in my book. 

People also ask

Do banks make more money with higher interest rates?

We tend to think that banks prefer high interest rates, and certainly their revenues are likely higher when interest rates on loans and other investments are higher. However, banks must fund their investments, and bank funding costs are also generally higher when market rates are high.May 16, 2016

[MyLadiesDaddy]

7 hours ago, yota691 said:

I would say that is Treasonous in my book.

And President Trump is beginning to show signs that he thinks so too.

[yota691]

The US central bank is increasingly divided over the next step in monetary policy

- 6 Hours Have Passed

The latest meeting of the US Federal Reserve showed that most policymakers in the Fed supported the need for a rate cut at their last meeting in September, but they remained increasingly divided on the future course of monetary policy.
According to the minutes of the meeting issued yesterday, the Board also agreed that a discussion should be held soon to decide on increasing the size of the central bank budget following the turmoil in the short-term money markets.
At their meeting on Sept. 17-18, policymakers decided by a 7-3 vote to cut the benchmark interest rate by a quarter percentage point to between 1.75 and 2 percent.
"Most participants felt that a 25 basis point (quarter percentage point) reduction in the federal funds target price target would be appropriate," the Fed said in the minutes.
But the limits of consensus did not exceed that. While everyone is increasingly concerned about the risks associated with the Trump administration's escalating trade wars, particularly with China, as well as slowing global growth and other developments such as the Brexit, they disagree on what that means for the US economy.
A number of policymakers felt that it was appropriate for the Fed to cut interest rates now to ward off risk, while others said the current outlook for the US economy does not justify a rate cut.
"They argued that the main uncertainties are unlikely to be resolved soon," the report said. Moreover, not believing that these uncertainties could derail growth, they saw no need for further monetary easing at the moment. ”
A number of policymakers pointed out that statistical models predict that the possibility of a recession in the medium term has increased in recent months, and some warned that the labor market in early 2019 may be less robust than previous estimates, according to preliminary reviews of the Bureau of Labor Statistics.
The Fed has cut borrowing costs twice this year after raising interest rates nine times since 2015. Seven of the 17 policymakers said last month they expect to cut rates again this year. Five said they saw no need for further cuts, and another five expected a rate hike by the end of 2019.
Investors widely expected another rate cut at the next meeting on October 29-30.

Reuters

[yota691]

The Fed cuts interest rates for the third time in a row

 30 October 2019 09:12 PM
Direct: The US Federal Reserve has decided to cut US interest rates for the third time in a row, with negative risks around the world and continued weak inflation.

The US central bank said in its monetary policy statement on Wednesday that it had decided to cut its benchmark interest rate by 25 basis points to a level of 1.50 percent to 1.75 percent.

Eight members of the Federal Reserve agreed to cut rates by about 0.25 percent, while two members opposed the decision, preferring to hold rates unchanged.

The Fed decided "in the light of the economic implications of global developments as well as downward inflationary pressures, we have decided to cut rates."

The Fed confirmed that it will continue to monitor economic data in light of uncertainty about the outlook.

The US central bank has cut interest rates by a total of 50 basis points at both meetings, for the first time in 10 years.

The Fed pointed to the data received indicating that the labor market remains strong, with economic activity rising at a moderate pace, while the unemployment rate remained low.

Although consumer spending has risen at a robust pace, fixed investment and trade exports remain weak.

 

[yota691]

Fed Vice: US economy and monetary policy in good shape

 01 Nov 2019 10:57 PM
Direct: The Fed vice president believes that the US economy and monetary policy are in good shape, noting that a three-time rate cut has significantly boosted the economy.

The full range of Fed changes, including moving away from an expected rate hike and even a threefold rate cut, is providing support and will continue to do so for the economy, Richard Clarda said in prepared comments on Friday.

"The economy is in good shape and monetary policy is in good shape."

The full effects of these adjustments on economic growth, labor market and inflation will be realized over time, he said.

The Fed this week cut interest rates by 25 basis points to be the third cut this year.

The Fed's vice-president argues that the current monetary policy stance is likely to remain appropriate as long as the information on the economy remains in line with the central bank's prospects for moderate economic growth, a strong labor market and inflation near the broad 2 percent target.

 

[yota691]

Trump informs Fed chairman of his protest over high interest rates

 19 November 2019 04:10 PM
From: Sally Ismail

Directly: President Donald Trump said he protested the US interest rates which he considers too high compared with other developed countries, during a meeting with Federal Reserve Chairman Jerome Powell.

Powell met with Trump and US Treasury Secretary Stephen Mnuchin at the White House on Monday, at the president's request to discuss the economy.

This is the second meeting between Trump and Powell face-to-face this year amid repeated criticism from the US president of the central bank's policy.

"In my meeting with Jerome Powell this morning, I announced my protest against the fact that the US interest rate set by our Fed is very high compared to interest in other rival countries," Trump wrote in a tweet on his Twitter account after yesterday's meeting. .

"In fact, US interest rates should be lower than everyone else," he said.

A very strong US dollar was hurting manufacturers and economic growth, he said.

The US president has repeatedly attacked the Fed chairman for interest rates to the extent that he has described him as the United States' biggest enemy and has blamed Powell for economic performance.

In the same context, the US Central Bank issued a statement after the meeting in which he said that Powell's comments were in line with his statements at the US Congressional hearings last week.

The statement said Powell did not discuss expectations on monetary policy except to emphasize that the course of the policy will depend entirely on the information received, which will cast a shadow on the future of the economy.

The statement added that policy makers in the Federal will determine the policy in order to support full employment and price stability with the clarification that these decisions will be made only based on careful analysis, objective and non-political.

 

 

[yota691]

US Dollar Stabilizes Globally as Fed Minutes Expected

 19 November 2019 04:26 PM
Direct: The US dollar was steady against a basket of other major currencies on Tuesday, as the Federal Reserve minutes and trade developments await.

Investors are awaiting the release of the minutes of the latest Fed policy makers meeting on Wednesday.

US Central Bank President Jerome Powell met with President Donald Trump to discuss the economic situation, with the fact that the latter informed the Fed chairman of his protest against extremely high interest rates .

In terms of trade developments, there is still uncertainty over when to sign a partial trade deal reached early last month.

The White House adviser Larry Kodlo at the end of last week that the US and Chinese sides were getting closer in trade talks , as reported by Chinese news agency Xinhua yesterday that a constructive telephone conversation.

By 1:09 pm GMT, the US dollar was steady against the euro at $ 1.1077, and rose marginally against the Japanese currency 0.06 percent to 108.75 yen.

The US currency rose against its British counterpart by about 0.1 percent to drop the pound to 0.1 percent, and rose against the Swiss franc by 0.2 percent to 0.9913 francs.

During that period, the dollar index against the basket of six major currencies settled at 97.822, the lowest level in nearly two weeks.

 

[yota691]

Fed member: US economy strong but faces headwinds

 19 November 2019 09:51 PM
Direct : A member of the Federal Reserve said that the US economy faces many challenges that come primarily from abroad.

John Williams, chairman of the Federal Reserve Bank of New York, said at an event in Washington on Tuesday that the economy faces many challenges, but the Bank's implementation of three rate cuts this year would help maintain growth.

"Things are strong locally and do not continue to be strong, but we are dealing with several global factors that we are trying to study."

The Fed member pointed out that the US economy is facing headwinds from slowing global growth, trade uncertainty and downward inflationary pressures.

"As a result of these global factors, economic growth has begun to slow in the United States," Williams said.

A Fed member explained that monetary policy adjustments have been made this year to balance the maintenance of a strong US economy with slowing global growth and provide insurance against potential future risks.

Williams stressed that monetary policy is in good shape but "unrestricted" and will respond to any change in economic data received.

 

[yota691]

Powell confirms: Fed is committed to achieving the inflation target

 26 November 2019 11:10 AM
Direct: Federal Reserve Chairman Jerome Powell stressed that the central bank is strongly committed to meeting the 2 percent inflation target, indicating that it is unlikely to raise interest rates any time soon.

Powell said in a speech in the capital of the state of "Rhode Island" Providence, on Monday, that the expectations of low inflation rate makes it difficult for the Fed to support the economy.

The Fed sees inflation at 2 percent as a sign of sustained economic growth and a level that keeps interest rates high enough to allow free movement in the event of a downward trend in the economy.

In prepared remarks, Powell said it was necessary for the Fed to use its tools to make sure that a downward shift in inflation expectations and inflation was not allowed.

The Fed president said they are firmly committed to achieving the 2 percent inflation target in a sustainable way, so families and businesses can expect it to develop long-term plans.

The Fed decided to raise interest rates at its last meeting last month to be the third consecutive increase this year, standing at a range of 1.5 to 1.75 percent.

"The current position of monetary policy is likely to remain appropriate and well positioned as long as the current conditions are generally good," Powell reiterated his recent rhetoric.

"At this stage of the extended economic expansion, I see that the cup is more than half full, and with the right policies we can fill it more, accumulate the gains made so far and spread the benefits to all Americans," he said.

 

[yota691]

The Fed is pumping $ 109 billion into the US financial system

 27 November 2019 08:26 PM
Direct : The Federal Reserve Bank of New York announced that it has injected $ 108.95 billion into the US financial system.

The bank said in a statement on Wednesday that it would inject $ 87.95 billion through repurchase agreements "repo overnight."

The bank also said it would repurchase securities at about $ 21 billion repo for 15 days.

The Fed yesterday pumped $ 92.7 billion to provide more liquidity in US financial markets.

The Fed has begun repurchasing securities since mid-September in an effort to stem the rise in short-term financing costs and keep them within the target range of 1.50 to 1.75 percent.

 

[yota691]

Fed: US economy is growing at a moderate pace with positive outlook

 27 November 2019 10:48 PM
Direct: The Federal Reserve said the US economy grew at a moderate pace, noting that the economic outlook remained positive.

The Fed said in a "Big Book" report released Wednesday for the period from October to mid-November, that more areas reported an expansion in the manufacturing sector compared to the previous period, although most is still suffering from the deterioration in this sector .

The Fed said the economic outlook remained broadly positive, with current growth expected to continue next year.

The central bank said employment continued to rise slightly even as the US labor market remained tight.

Many regions noted significant job growth in professional and technical services as well as health care, according to the Fed.

Wages continued to grow at a moderate pace in most regions, the central bank said.

Most regions reported modest price increases during the reporting period, while some reported higher costs due to tariffs.

 

[yota691]

Mohamed al-Arian warns: Markets may return to besiege the Federal Reserve

 29 November 2019 06:30 PM
Edited by Sally Ismail

Direct: Markets and the Fed merged into a bizarre interaction over the past year, amid a substantial initial imbalance between the two sides over the interest rate outlook.

This paved the way for a truce that could now be jeopardized by growing market pressure on the central bank to cut interest rates , said economist Mohammed al-Arian in an analysis published by Bloomberg-Opignon .

Include evidence that indicate growing dissatisfaction with the decision to market the Fed on switching to standby mode (keep interest rates unchanged), for example , are not limited to :

First , yields on Treasuries continued to fall, with the fact that 10-year US government yields were trading on Monday at a level below the mid-August range of more than 20 basis points.

Second, the yield curve between the two-year and 10-year Treasury bills recorded a flat performance for the ninth consecutive day, with the gap narrowed to 14 basis points from the recent high of 27 basis points two weeks ago.

Third , US 5-year Treasury yields have fallen again without government debt yields maturing two years later.

On the one hand, this mounting pressure from the market has been very gradual, especially when compared to previous events, so those pressures may not be as important.

However, it should be noted that these market movements have taken place despite the decisions taken by the Fed and caused a significant increase in liquidity including the purchase of US Treasury bills and the implementation of measures to stabilize the repo market (securities repurchases) which contributed to the availability of exceptional levels Of cash for banks.

It is also confusing that the flattening of the Treasury yield curve - usually a signal of market expectations of a slowdown or contraction as well as a sell-off in equities - has taken place in the context of positive market and economic developments.

US stock indices hit an all-time high again on Monday, adding to the rally that sent the S&P 500 up about 9 percent in the direction it took early last month.

Debt markets have also done well, with the exception of low-quality bonds, where credit spreads are largely due to limited companies and sectors.

The past few weeks have given more partial signals that economic conditions in Europe may have bottomed out, including the third consecutive monthly improvement in Germany's Ifo Business Confidence Index , the region's economic powerhouse.

This is coupled with the comfortable economic factors associated with the continued strength of the US labor market, as well as the easing of trade tensions between China and the US as well as the strong quarterly earnings season.

Such competing motives highlight the growing accumulation of supportive market and market dynamics in the short term, the more ambiguous medium-term outlook that far exceeds the still fragile global economy and the large divergence between asset prices and key fundamentals.

Without further clarity on this key discrepancy, the challenge for investors remains in the best way to maintain short-term bullish performance as the portfolio strengthens to move well between investment vehicles during long-term uncertainties.

As for the Fed, I think central bank officials are hoping that markets will refrain from unwarranted pressure again for further rate cuts.

The last thing the Fed or any central bank may want is to be put in the loser position anyway: by either meeting the market's desire by cutting interest rates even though the economy does not need it and is unlikely to benefit from it or resisting market pressures and risking a sell-off. Within stock markets that can have adverse effects on the real economy.

 

[MyLadiesDaddy]

57 minutes ago, yota691 said:

Mohamed al-Arian warns: Markets may return to besiege the Federal Reserve

 29 November 2019 06:30 PM
Edited by Sally Ismail

Direct: Markets and the Fed merged into a bizarre interaction over the past year, amid a substantial initial imbalance between the two sides over the interest rate outlook.

This paved the way for a truce that could now be jeopardized by growing market pressure on the central bank to cut interest rates , said economist Mohammed al-Arian in an analysis published by Bloomberg-Opignon .

Include evidence that indicate growing dissatisfaction with the decision to market the Fed on switching to standby mode (keep interest rates unchanged), for example , are not limited to :

First , yields on Treasuries continued to fall, with the fact that 10-year US government yields were trading on Monday at a level below the mid-August range of more than 20 basis points.

Second, the yield curve between the two-year and 10-year Treasury bills recorded a flat performance for the ninth consecutive day, with the gap narrowed to 14 basis points from the recent high of 27 basis points two weeks ago.

Third , US 5-year Treasury yields have fallen again without government debt yields maturing two years later.

On the one hand, this mounting pressure from the market has been very gradual, especially when compared to previous events, so those pressures may not be as important.

However, it should be noted that these market movements have taken place despite the decisions taken by the Fed and caused a significant increase in liquidity including the purchase of US Treasury bills and the implementation of measures to stabilize the repo market (securities repurchases) which contributed to the availability of exceptional levels Of cash for banks.

It is also confusing that the flattening of the Treasury yield curve - usually a signal of market expectations of a slowdown or contraction as well as a sell-off in equities - has taken place in the context of positive market and economic developments.

US stock indices hit an all-time high again on Monday, adding to the rally that sent the S&P 500 up about 9 percent in the direction it took early last month.

Debt markets have also done well, with the exception of low-quality bonds, where credit spreads are largely due to limited companies and sectors.

The past few weeks have given more partial signals that economic conditions in Europe may have bottomed out, including the third consecutive monthly improvement in Germany's Ifo Business Confidence Index , the region's economic powerhouse.

This is coupled with the comfortable economic factors associated with the continued strength of the US labor market, as well as the easing of trade tensions between China and the US as well as the strong quarterly earnings season.

Such competing motives highlight the growing accumulation of supportive market and market dynamics in the short term, the more ambiguous medium-term outlook that far exceeds the still fragile global economy and the large divergence between asset prices and key fundamentals.

Without further clarity on this key discrepancy, the challenge for investors remains in the best way to maintain short-term bullish performance as the portfolio strengthens to move well between investment vehicles during long-term uncertainties.

As for the Fed, I think central bank officials are hoping that markets will refrain from unwarranted pressure again for further rate cuts.

The last thing the Fed or any central bank may want is to be put in the loser position anyway: by either meeting the market's desire by cutting interest rates even though the economy does not need it and is unlikely to benefit from it or resisting market pressures and risking a sell-off. Within stock markets that can have adverse effects on the real economy.

 

Master Yota could you translate this to truck driver for me. I don't understand what he's trying to say but I get the felling that 

it's important. 

[yota691]

Incompetent Federal Reserve guy, jack up the rates to fast. I would say IMO Powell is a Never Trumper. Trump criticize the rate increase, Powell didn't like it, holler this is my job and the Fed is independent to function that it see best. Now Powell had to eat crow drop rates, because his Independent decision is coming back to bite him in the butt. The last rate cut was suggested to be cut half point by Trump, I believe those are the correct # Powell only went a quarter point, Powell should drop it more. Last part of this article...

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As for the Fed, I think central bank officials are hoping that markets will refrain from unwarranted pressure again for further rate cuts.

The last thing the Fed or any central bank may want is to be put in the loser position anyway: by either meeting the market's desire by cutting interest rates even though the economy does not need it and is unlikely to benefit from it or resisting market pressures and risking a sell-off. Within stock markets that can have adverse effects on the real economy.

 

I'm just going off what I read and experience in real life dealing with my bank. I'm not and expert in this subject and don't claim to be...

[MyLadiesDaddy]

13 minutes ago, yota691 said:

I'm not and expert in this subject and don't claim to be.

Neither am I. Thanks, your explanation was far better than my understanding. 

[yota691]

The Fed pumps $ 72 billion into the financial markets

Saturday 07 December 2019 138

 

Washington / Continue 

 

The Federal Reserve Bank of New York continued to pump more liquidity into the American financial system, as it sought to keep the interest rate within its target range.

The US bank said in a press release that it had pumped $ 72.8 billion through "one-night repo" repurchase agreements.

The Federal Reserve yesterday pumped $ 78.7 billion to provide more liquidity in the US financial markets.

Repurchases are a way for borrowers to raise short-term financing by agreeing to buy and sell securities over very short time frames.

The Federal Reserve started securities repurchases since mid-September, in an effort to stem the rise in short-term financing costs and keep them within the target range, which ranges from 1.50 to 1.75 percent.

[yota691]

Trump was right again, Rate hikes was another way to make Trump look bad, didn't work. This could have really explode but the Hate America Never Trumpers only want to destroy. They could careless about the lower, middle and the upper deplorable American People even those that defend and support the chaos, they don't care about you...98.7%...

Fed member: interest rate cuts will boost US economy growth in 2020

 December 13, 2019 11:25 PM
Direct: The President of the Federal Reserve in New York said that the central bank's interest rate cuts this year put the US economy on the right path to strong growth in 2020.

"The housing market is already thriving in the United States from where it was a year ago, and consumer spending is very strong," John Williams, speaking in New York on Friday, added.

"With the adjustments we've already made, and the lowering of the interest rate, we have made the economy on a very strong and sustainable base, in order to achieve good growth next year," Williams said.

At this week’s meeting, the Fed decided to fix the interest rate unchanged after cutting it 3 times this year to a level between 1.50 percent to 1.75 percent.

Williams said that some of the risks that prompted the Fed to cut borrowing costs now seemed closer to a solution.

Earlier in the day , the United States and China announced an agreement on the first phase of the trade deal, and the decisive victory for the Conservatives in the general elections supported the completion of the Brexit deal on time.

The head of the Federal Reserve Bank of New York indicated that he expects the economy to grow by about 2 percent in 2020 and that inflation will return to nearly the goal of 2 percent for the next year or so.

[yota691]

After the interest rate decision ... Has the Fed's job really ended?

 December 14, 2019 3:30 PM
Edited by: Sally Ismail

Direct: The Fed has not presented a change in its monetary policy stance, while emphasizing a message that a fundamental change remains a condition for them to adjust the policy stance.

According to an analytical view of London's chief international economist, James Knightley , published by investment bank blog ING, it is believed that risks are leaning toward weaker economic growth amid a good background on inflation.

The US central bank decided to stabilize the interest rate at its current level, which ranges from 1.50 to 1.75 percent, with an explanation that the "Dot Plot" curve indicates no increase in interest in 2020.

ING believes that there is a possibility of implementing two US interest rate cuts early in 2020.

No change in monetary policy

After a 25 basis point (0.25 percent) rate cut in the July, September and October meetings, the Fed official indicated a preference for a "pause" approach unless substantial changes in economic outlook occurred.

With the indications given by recent data that the risk is minimal about an imminent economic recession, and US stock markets recording new historical highs, in addition to the stability of the yield curve on US Treasury bonds, there was no possibility of any change in monetary policy this month.

This is of course with what we got, as the decision was taken unanimously to leave the interest rate on federal funds at a range between 1.50 to 1.75 percent.

But the monetary policy statement accompanying the resolution removed the reference to "uncertainties" about future prospects, and replaced it by saying that interest rates are "appropriate", with the assurance that the committee "will continue to monitor the implications of the information on economic forecasts, including global developments and low inflationary pressures, to assess the course Appropriate to the target range for the federal funds rate. "

Was the mission accomplished?

The Fed also provided an update of forecasts that are not significantly different from the expectations of September, other than lowering the rate expectations for federal funds by the end of the year to current levels.

In the forecast report issued after last September's meeting, the bank did not expect the rate cut, which occurred at the October 30 meeting, to take place.

In addition, the bank decided to reduce the US unemployment rate forecast by the end of 2019, to reflect the latest good figures.

 

Federal Reserve's latest forecasts against September estimates

It is also clear that the Fed believes that the "mid-cycle adjustment" has done its job, expecting that the next step will be to raise interest rates once in 2021.

The Fed has considered that the rate cut 3 times this year as a "mid-term adjustment" aimed at supporting only continued economic growth.

We still - like markets - doubt that vision, and we believe that with the risks of the growth of the American economy tending to the downside and with the rate of inflation remaining good, there is a strong possibility for further rate cuts during the first half of 2020.

The reverse wind continues

While last Friday's US jobs report painted a picture of the dynamic labor market, other data indicates that the US economy is slowing.

Capital expenditures contracted in both the second and third quarters of the current year, with the fact that the Durable Goods Report hints at the possibility of a fall for the third time in a row in the fourth quarter of 2019.

Meanwhile, the latest survey by the Institute of Industrial Supply to companies showed weakness again, while the external environment remains weak with weak industry sector figures in Germany and the confirmation of trade data in Asia the same message .

Given this situation, we note that the pace of job growth seen during November is not sustainable, and that economic growth will be moderate.

Trade tensions also remain a major dilemma, given the incomplete stage of the trade deal, in addition to the uncertainty about the US tariffs that will be imposed on a group of Chinese goods on December 15 .

This means that the uncertainty caused by all of these things leads us to conclude that trade will remain a major headwind for economic growth in 2020.

Extra cuts?

Given the persistent trade uncertainty as well as weak external demand and the strength of the US dollar, ENG believes the economy will grow to the minimum market expectations (1.4 percent to 1.8 percent from 2020).

We also expect US Treasury yields to reach 1.4 percent in the first half of next year .

The political uncertainty surrounding the US presidential election next year could prompt companies to take a more cautious approach to expansion plans, focusing on the "wait and see" policy.

Historically, the Fed prefers to maintain steady policy trends in the election period in order to reaffirm independence, but US policymakers are likely to feel more pressure during that election cycle.

If opinion polls indicate an intensification of electoral competition, President Donald Trump will not be shy about describing Jerome Powell and the Fed as "bad people" if economic growth data are disappointing and the US central bank does not cut interest rates.

While this in itself is unlikely to affect the Fed, any negative reactions to market sentiment could prompt it to change its stance on monetary policy.

As such, we note that if the Fed feels that a rate cut may be required at some point, it is likely that this step will be taken sooner rather than later, in an attempt to extricate themselves from the political fallout.

In any case, given that inflation appears to be good, the Fed has the flexibility to make a decision in response to a possible fundamental weakness and therefore we continue to see the interest rate cut twice by 25 basis points in the first half of 2020.

 

[yota691]

A member of the Fed calls for not moving the US interest in 2020

 December 17, 2019 08:49 PM
Direct : A member of the Federal Reserve said that interest rates in the United States should remain at current levels over the next year.

He said, "Robert Kaplan," Federal President of "Dallas" during an event in New York, today, Tuesday: "The appropriate way of politics is to stay at current levels," according to the agency "Reuters".

The Federal Reserve decided at its last meeting to stabilize the interest rate, expecting it not to move it next year after it cut borrowing costs 3 times this year.

"Kaplan" said he believed that these cuts in interest rates helped to balance the risks to the economy compared to what it was earlier this year.

The Fed member believes that the American consumer will continue to support the economy in 2020 as long as the labor market remains tight.

Kaplan said he expects the US economy to grow by about 2 percent next year.

Concerning the risks to the economy, Kaplan cautioned that President Donald Trump's administration's strategy of using tariff threats against multiple countries poses a continuing uncertainty.

Kaplan said that although the easing of the trade war between the United States and China last week was a welcome development, this does not mean that tensions will go away.

The United States and China announced that they had reached an agreement on the first stage of the trade deal last week and to eliminate US tariffs that were scheduled for Chinese goods last Sunday.

 

[yota691]

Trump calls for the Fed to cut rates again

 December 17, 2019 09:37 PM
From: Ahmed Shawky

Direct : US President Donald called on the Federal Reserve to cut interest rates again, and called for the launch of quantitative easing.

The Federal Reserve cut interest rates 3 times this year, standing at a level between 1.50 percent and 1.75 percent.

But at its last meeting, the Fed decided to fix the interest rate, indicating that it expects borrowing costs not to move in the next year.

The US President said in a tweet via "Twitter", today, Tuesday: "It would be very impressive if the Federal Reserve further cut interest rates and quantitative easing."

And Trump continued: "The dollar is very strong against other currencies and there is almost no inflation, this is the time to cut interest, and exports will rise significantly."