Fed Chief's Remarks On Economy And Interest Rates Cheer Investors

President Trump Says the Federal Reserve Is a 'Much Bigger Problem Than China'

"Powell is not suggesting that since they are just below the range they may stop soon".

The Fed needs to raise interest rates to stave off inflation but investors fear they may also slow down economic growth.

Even in the face of such headwinds, policy makers said a resilient banking system shielded with larger stores of capital and cash cushions would be "less likely to amplify the effects of falling asset prices".

The US central bank chairman has repeatedly tried to advise investors not to read too deeply into the Fed's economic forecasts, saying policymakers often don't have the ability to see that far into the future and decisions are formed based on incoming data from markets, the economy and business contacts.

In his speech Wednesday, Powell spoke directly to the stock market volatility and somewhat downplayed the recent action. Some analysts are now saying the Fed may decide to raise rates only once or twice in 2019. Some listeners thought his tone conveyed greater conviction about continuing rate increases.

Mr Trump blames Mr Powell for the rate hikes that he claims are undermining his economic and trade policies.

Neither Clarida nor Powell said definitively whether rate hikes should stop at neutral, and each stressed that level was very hard to estimate.

His clarification Wednesday didn't otherwise indicate any substantive change in the Fed's policy plans.

He did not specifically cite the criticism he has faced from the White House, but he defended the Fed's recent moves and said "there is no preset policy path". He will have an opportunity to do that next week in testimony on Capitol Hill.

Utah Jazz: Grading the Kyle Korver trade
Simply put, if Quin Snyder's team can't make 3-pointers, the very thing his offense is created to do, it's nearly dead on arrival. Korver had asked to be traded if LeBron left the Cavaliers, and when he wasn't this offseason, he didn't make a fuss.

The minutes did raise a number of worries about Trump's get-tough trade policies, which have levied tariffs on billions of dollars worth of imports from China and other countries and prompted retaliation against USA products.

In November, Fed policymakers agreed to hold rates steady, leaving the benchmark rate unchanged in a range of 2% and 2.5%.

Next month's expected quarter-point increase would lift the central bank's target for the federal funds rate to a range of 2.25 per cent to 2.5 per cent.

Most of the money from the tax cuts has been devoted to finance share buybacks, further boosting the wealth of the financial oligarchy, not to undertake expansion in the real economy.

This was in stark contrast to what the chairman said less than two months ago, the last time he commented on Fed policy. Investors might, for example, question whether the Fed would feel free to keep raising rates, if it felt it necessary to control inflation.

Earlier on Wednesday the Fed published its first-ever report devoted to financial stability, which warned that tensions over trade, the turbulent Brexit discussions, and trouble in China and emerging markets could rock a USA financial system where asset prices are "elevated" and business credit quality may be "deteriorating".

Investors expect more clues on the Fed's monetary tightening path from the minutes of the U.S. central bank's November 7-8 meeting, due later on Thursday.

"I don't think instability is elevated", Powell said. "Our gradual pace of raising interest rates has been an exercise in balancing risks". Powell said he and other policy makers continue to see a "solid" outlook for the US economy, while noting that interest rates are "just below" the so-called neutral range.

Meanwhile, U.S. new home sales stood at a seasonally adjusted annual rate of 544,000 in October, 8.9 percent below the revised September level, the Commerce Department said.

Related news:

Hot News

isis-killer-beheading-video-story-top Wilder Retains Heavyweight Crown After Fury Thriller Ends In Draw
Dec 03, 2018 - 00:28
He still ended up flat on the canvas in the 12th round, his eyes rolling backward while Wilder celebrated above him. For viewers in the United Kingdom , you can watch the match through BT Sport Box Office streaming app for £19.95.

isis-killer-beheading-video-story-top Trump, Xi chew over trade war at high-stakes dinner
Dec 03, 2018 - 00:21
Earlier in the day, Trump canceled a planned news conference, saying the timing was not right because of the death of former U.S. But it was also a bet on a deal being reached .

isis-killer-beheading-video-story-top Mandel: Why the Playoff selection committee eschewed controversy
Dec 03, 2018 - 00:18
Clemson defeated Pittsburgh 42-10 on Saturday to win the ACC Championship. "There's no comparison", Narduzzi said. Oklahoma also fell to Florida in the 2008 BCS National Championship game in the same stadium.

Wanted: NYPD seeks couple who lost engagement ring in Times Square
Dec 02, 2018 - 18:26
The department has taken to social media in an effort to enlist the public's help in locating the couple. Police released surveillance images and footage of the couple trying to retrieve the ring.

isis-killer-beheading-video-story-top Kerch Strait incident in a nutshell: Putin tells Trump what happened
Dec 02, 2018 - 18:21
Her main focus, however, was on the situation in Ukraine. "The freedom of shipping traffic in the Sea of Azov . must be ensured". "I replied to his questions about the incident in the Black Sea", Putin told reporters at the end of the summit.

isis-killer-beheading-video-story-top Half Of HIV Positive People Face Discrimination, New Poll Finds
Dec 02, 2018 - 14:32
Bruce Broughton, a Navy Veteran from Bloomington, has lived with HIV for 28 years, and he's feeling healthy. The majority of the infected were found to belong to the age group of 20-49.

isis-killer-beheading-video-story-top All Blacks Sevens complete Dubai double
Dec 02, 2018 - 13:39
France increased its lead to 28-5 with Adam Zaruba in the sin-bin for not releasing on a try-saving tackle. The Aussie men now head to Cape Town for the second leg of the HSBC Sevens World Series next weekend.

isis-killer-beheading-video-story-top Jurgen Klopp: Liverpool still have to develop
Dec 01, 2018 - 13:32
We want to change and we want to win. "It's 4:15 p.m. kick-off, it will be almost dark, no, it'll be dark already?" If it all goes to plan, it looks great.

isis-killer-beheading-video-story-top New cases of HIV rise in Eastern Europe
Dec 01, 2018 - 11:08
The momentum to revamp political commitment to end AIDS by 2030 has never been so strong in the European Region. Every second person diagnosed with HIV has already reached an advanced stage in the infection.

isis-killer-beheading-video-story-top Steph Curry offers brilliant response to penned letter, something special planned
Nov 30, 2018 - 08:18
Morrison's letter and Curry's heartfelt response quickly went viral, with many Twitter users applauding Curry's honest response. The shoes have since been rebranded in the girls section of UA's site as "Grade School UA Curry 5".

isis-killer-beheading-video-story-top Microsoft Wins $480M Contract for Combat-Grade HoloLens
Nov 30, 2018 - 07:29
Bloomberg , which first spotted the contract win, reports that the deal will create a dramatic increase in HoloLens production. Employees that are ethically conflicted regarding any contracts will be allowed to switch to a different project if they wish.

isis-killer-beheading-video-story-top Mississippi's ugly past casts long shadow on Senate election
Nov 30, 2018 - 06:28
MS has a history of racially motivated lynchings and violence against people who sought voting rights for black citizens. Dianne Swennumson and her husband have supported Republicans in the past but say they're appalled by Mr.

isis-killer-beheading-video-story-top Video! Kate Middleton’s First Words About Meghan Markle’s Pregnancy
Nov 30, 2018 - 05:56
Although Frogmore cottage reportedly needs some work to turn it back into the 10-bedroom luxury home it once was. The Duke and Duchess of Sussex are transforming Grade II- listed Frogmore Cottage before moving there next year.

isis-killer-beheading-video-story-top Spurs can 'beat everyone' claims Toby Alderweireld ahead of Arsenal clash
Nov 30, 2018 - 05:18
"It's always nice games to play at the Emirates, with two teams who want to play football and want to win". To arrive in that way in Barcelona we need to manage and we need to rotate the squad.

isis-killer-beheading-video-story-top Melania Trump defends controversial White House holiday decorations
Nov 30, 2018 - 05:11
On the latest installment of her show, Wendy told her audience that she is weirded out by the first family's Christmas trees . The FLOTUS revealed her new Christmas decorations on Monday, but she was not in attendance during the said reveal.