Federal Reserve policymakers in favour of ‘restrictive’ policy

Trump urged to declare China a currency manipulator

United States central bankers see no reason to pause the current course of gradual rate hikes that have infuriated President Donald Trump and some even say the Federal Reserve may soon need to slow the economy, according to meeting minutes.

Rising interest rates may reach a level that matches U.S. President Donald Trump's relationship with the media.

Unusually for a USA president, Mr. Trump himself has increased criticism of the Fed's rate increases, calling them "crazy" and warning they would hurt the economy.

It was a rare economic analysis from Quarles, the Fed's Vice Chair for Supervision. He argues the Fed needs to raise rates to rein in buoyant asset markets and reduce the risk of destabilizing financial imbalances.

YES: Rising interest rates are rarely a friend to a healthy economy and to the stock market. Therefore, any decision the Fed makes usually leads to major impacts around the world.

Powell has raised the key interest rate three times by a quarter of a point this year and is expected to raise it a fourth time before the end of the year.

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. Shanghai's benchmark stock index tumbled overnight to close at a near four-year low and China's premier warned of risks to the economy.

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The CDC received information on 33 confirmed cases of AFM across 16 states in 2017, 149 cases in 39 states. In most cases, the patient's arms or legs become weak, similar to the results of infection with polio .

"The current level of the policy rate is about right", Bullard said of the USA central bank's current short term policy rate, which is set in a range of between 2.00 percent and 2.25 percent.

"Our economy is strong", Powell said at a press conference following the September meeting. As other Fed governors retire, the president has the opportunity to fill more spots.

The Fed directly controls only short-term interest rates.

"The more the economy's potential growth increases, the more gradual we can be in our removal of monetary-policy accommodation", he said.

They also noted that some businesses said they were investing less in the energy sector due to tariffs on steel and aluminum imports, part of an array of trade conflicts the Trump administration has pursued with trading partners.

Wednesday's minutes detailing opposition to this view coming from only "a couple" of the Fed's board members have shown the market that the bar to raising rates that high is actually quite low. The committee voted unanimously for a rate hike of 0.25% and there are signs of more increases coming in the near future. That would put it above the 3 percent level which the Fed now pegs as its "neutral rate".

Regardless of actual White House policy, Mr. Trump's public berating of the Fed could perversely be having the opposite effect than the president intends, many economists say.

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