Trump Wants Feds To 'Feel The Market' Instead Of Using 'Meaningless Numbers'

Trump Wants Feds To 'Feel The Market' Instead Of Using 'Meaningless Numbers'

Feel the market, don't just go by meaningless numbers.

Today the FOMC will kick off its highly anticipated two-day meeting.

President Donald Trump has repeatedly criticized the Fed for raising rates, saying its strict stance could deal a blow to the economy.

On December 17, in a tweet sent one hour before stock markets were due to open, Trump wrote: "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".

Some economists are predicting, however, that the decade-long improving USA economy could stall in the next year or so and perhaps even fall into a recession, which, if it occurs, would in most circumstances call for cutting interest rates to boost economic activity. As a result, like many economists, he predicts that the Fed will raise rates only twice next year.

It is also removing stimulus by reducing its portfolio of Treasuries and mortgage-backed securities, which were purchased in response to the financial crisis.

In September, Fed officials collectively forecast that they would raise rates three times in 2019.

Fiorina said talk of a recession is "premature", but the economy may stagnate or get "slightly worse" next year. The president has said he is not happy with his pick Counter-productive criticism?

President Trump has bragged in the past that he's responsible for the economy taking off like a "rocket ship".

Goldman Sachs counts on a Fed slowdown to support a recovery in developing-nation assets next year, and the mere hint that the Fed could end its hiking led some money managers to re-examine the asset class last month.

Has Trump tried to influence the Federal Reserve before?

In addition, interest-rate sensitive sectors of the US economy such as housing and autos are under more pressure. The dot plot, updated quarterly, displays the anonymous projections of individual Fed officials for the path of their benchmark rate as well as for inflation and economic growth. But they can also slow the economy. For a President who likes to boast about his ability to create jobs, this might make that task a lot harder.

Jerome Powell, the current Federal Reserve chairman, was appointed to his position by Trump.

So far, Powell has taken care to express concern about rising tariffs while noting that they might ultimately prove beneficial if they force China and other nations to lower their trade barriers and thereby promote freer trade. In Fed parlance, it will be "data-dependent".

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