Trump takes aim at Federal Reserve over interest rate hike
The US president took to twitter to attack the Federal Reserve for ‘even considering’ raising interest rates ahead of the central bank’s final policy meeting of 2018.
US President Donald Trump took to twitter to attack the Federal Reserve and its Chairman Jay Powell on Monday for ‘even considering’ increasing interest rates in December ahead of its final policy meeting of 2018.
‘It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!,’ Trump tweeted.
Dollar rallies against weaker rivals
The president isn’t wrong about the dollar, which has made modest gains against a basket of currencies, hitting a 19-month high at close on Friday.
But the dollar’s strong showing is not the result of a US economy on the rise, but rather the result of other currencies in decline.
Will the Fed raise rates for a fourth time in 2018?
The US central bank has already raised interest rates three times this year, with many market commentators expecting the Federal Reserve to do so again before the new year.
There is a strong rationale for the Fed to raise rates in December, with further hikes in 2019 looking less likely as trade tensions between the US and China continue to heat up amid a global economy that is showing significant signs of cooling down.
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