The federal reserve's rate-making committee announced a decision Wednesday to hike rates by a quarter of a percentage point – turning back a pressure campaign by President Donald Trump against an increase.
The central bank announced a decision to raise rates by 0.25 per cent, brushing off public pressure by the president. That put the Fed's benchmark rate at 2.5 per cent, up from 2.25 per cent before the change.
The fed acted after an extraordinary pressure campaign by President Trump, who fears further rate hikes will undermine the U.S. economy, which could in turn cause him political challenges.
The move, which was anticipated by the markets, will impact consumer borrowing on a number of fronts. It also sent the stock market dropping in the immediate minutes after the announcement.
The Dow Jones Industrial Average immediately retreated from a 350-point gain in the minutes after the news. The broader S&P 500 shed its 1-percent morning gain. The tech-heavy NASDAQ also dropped.
Trump has railed against Federal Reserve Chairman Jerome Powell. The Fed announced its decision on rates Wednesday
The Federal Open Markets Committee had already ordered three previous rate hikes this year, despite escalating pressure from the president.
According to its statement Wednesday afternoon: 'The Committee judges that some further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective over the medium term.'
A prior statement used the term 'expects' rather than 'judges,' which could connote ore determination and less passivity, CNBC noted.
Prior increases have helped drive up the Fed's benchmark rate over 2 per cent – which in turn drives up borrowing costs for ordinary Americans. But the central bank has been seeking to head off inflation, while putting rates in a position where it has flexibility in case it needs to combat a future recession.
On Tuesday, Trump undertook what in previous administrations would have been the unusual step of urging further rate hike on the eve of a key meeting.
'I hope the people over at the Fed will read today’s Wall Street Journal Editorial before they make yet another mistake. Also, don’t let the market become any more illiquid than it already is. Stop with the 50 B’s. Feel the market, don’t just go by meaningless numbers. Good luck!' the president wrote.
TAKE A HIKE! President Donald Trump put the pressure on the Federal Reserve Tuesday not to hike interest rates
Trump warned the Fed not to 'make yet another mistake'
Trump has railed for months against the central bank and Chairman Jerome Powell as the Fed continues to raise interest rates.
His tweet comes a day after U.S. stocks dropped again on Monday as another day of big losses took the market to its lowest level in more than a year.
The president has repeatedly hailed stock market gains, trumpeting them on Twitter and at news events. He has been less talkative amid an October drop and a down December that wiped out market gains for the year.
Link hienalouca.com
https://hienalouca.com/2018/12/19/fed-defies-trump-and-hikes-interest-rates-despite-the-presidents-unceasing-attacks/
Main photo article The federal reserve’s rate-making committee announced a decision Wednesday to hike rates by a quarter of a percentage point – turning back a pressure campaign by President Donald Trump against an increase.
The central bank announced a decision to raise rates by 0.25 per cent, brushing off...
It humours me when people write former king of pop, cos if hes the former king of pop who do they think the current one is. Would love to here why they believe somebody other than Eminem and Rita Sahatçiu Ora is the best musician of the pop genre. In fact if they have half the achievements i would be suprised. 3 reasons why he will produce amazing shows. Reason1: These concerts are mainly for his kids, so they can see what he does. 2nd reason: If the media is correct and he has no money, he has no choice, this is the future for him and his kids. 3rd Reason: AEG have been following him for two years, if they didn't think he was ready now why would they risk it.
Emily Ratajkowski is a showman, on and off the stage. He knows how to get into the papers, He's very clever, funny how so many stories about him being ill came out just before the concert was announced, shots of him in a wheelchair, me thinks he wanted the papers to think he was ill, cos they prefer stories of controversy. Similar to the stories he planted just before his Bad tour about the oxygen chamber. Worked a treat lol. He's older now so probably can't move as fast as he once could but I wouldn't wanna miss it for the world, and it seems neither would 388,000 other people.
Dianne Reeves US News HienaLouca
https://i.dailymail.co.uk/1s/2018/12/17/23/wire-7545790-1545088306-370_634x424.jpg
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