Trump Again Blasts Fed For 'Even Considering' Rate Hike

Analysts expect the US central bank will raise rates at the end of its two-day policy meeting on December 19.

On Monday, he called it "incredible" that the Fed would consider raising rates this week with "the outside world blowing up around us".

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.

Unemployment remains at an nearly 50-year low and growth is expected to be around 3 percent this year, well above the 2 percent that the Fed thinks is normal for the USA economy. This means the Fed will raise rates by 25 basis points and indicate that going forward, the policy will be data-dependent.

Many economists also see the Fed increasing rates next year, although at a slower pace in the face of a possible economic recession.

"While the Fed will probably signal this week that they only expect two rate hikes next year, I think their forecast will be wrong and they will end up raising rates three times", Zandi said. "We also know that moving too slowly keeping interest rates too low for too long - could risk other distortions in the form of higher inflation or destabilizing financial imbalances", Powell said November 28.

World stocks stabilized Tuesday, with Wall Street expected to edge up after heavy losses the day before, as traders prepare for a likely interest rate hike by the Federal Reserve.

Klopp and Howe united in appreciation for Salah
I know I could probably draw the goals we conceded, but we let Bournemouth come back in the game, that's completely different. Klopp insisted that all credit for Liverpool's "massive" Premier League form should go to his players.

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

Investors have bet heavily that the U.S. central bank will raise rates at the end of its two-day policy meeting on Wednesday as it delivers on a promise to raise rates gradually toward a neutral setting to keep the economy from overheating.

But a too-dovish Fed could raise the specter of an economic slowdown and spook stocks into a bear market, warns Chris Rupkey, chief financial economist at MUFG Union Bank in NY.

Analysts said they expect the Fed to move ahead with a rate rise at this week's meeting, but its plans for next year are less certain. However, the US economy grew an annualized 3.5% in the third quarter, unemployment is now at a 50-year low, and inflation is near target.

With inflation meeting the Fed's 2 per cent target and few policymakers anxious about it overshooting, Navarro suggested the central bank is raising rates for the wrong reason. Santa Clause seems to have lost his way this year, defying hopes that stocks will rally towards the year's end.

The Fed will issue a monetary policy statement following its two-day meeting this Wednesday, Dec 19, and soon afterwards Powell will comment on the decision to a press conference.

  • Darren Santiago