Fed ready to hike again if economy remains on track

Comex Gold

Comex Gold

A weaker U.S. dollar, which fell sharply this week after President Donald Trump criticised the Federal Reserve's interest rate rises, supported the rand's rally.

The benchmark United States interest rate, which plays a large role in setting borrowing costs for mortgages, credit cards, small business and auto loans, was set at a range of 0.5 per cent to 0.75 per cent when Trump was sworn in.

Trump's remarks to Reuters follow reports that the president criticized the Fed's interest rate hikes at fundraiser in Long Island over the weekend.

Asked if he believed in the Fed's independence, Trump said: "I believe in the Fed doing what's good for the country". But during this period of time I should be given some help by the Fed.

The minutes also gave an indication the Fed was preparing to debate once again how best to implement its monetary policy. The Trump administration has raised tariffs on imports from a range of countries, including China and members of the European Union, triggering retaliatory tariffs on US exports.

The Fed is expected to raise rates twice more this year.

US stocks dipped after Trump's comments to Reuters and the dollar edged down against a basket of currencies. The president publicly questioned the interest-rate hikes in July.

Speaking at a fundraising event in the Hamptons, Trump said he wanted Powell to start acting like a cheap-money chairman while speaking about the recent increase in interest rates.

It is worth noting that despite Trump's criticism of Powell's rate hike plan, the markets are still discounting 75 basis points of hiking by December 2019.

Donald Trump chose Jerome Powell past year to head the USA central bank, promoting a soft-spoken centrist to replace Janet Yellen. 1 meeting on Wednesday, has been raising rates gradually since 2015 and is now concerned the economy is so strong that inflation could rise persistently above its 2 percent target.

American presidents have rarely criticized the Fed in recent decades because its independence has been seen as important for economic stability. Mr. Trump also criticized Ms. Yellen as a presidential candidate in 2016, saying she should be "ashamed of herself" for keeping interest rates low.

"Am I happy with my choice?" Trump said to Reuters about Powell.

"We do our work in a strictly nonpolitical way, based on detailed analysis, which we put on the record transparently, and we don't take political considerations into account", Powell said in the interview. He took on the job earlier this year; his term expires in 2021.

After sliding to a two-year low of 15.70 last week as the Turkish crisis triggered a broad flight from emerging markets, the rand has regained some ground, advancing around 8% in the last seven days as the greenback's rally faltered.

Recommended News

  • Air quality to worsen in Vancouver, Edmonton after brief respite

    Air quality to worsen in Vancouver, Edmonton after brief respite

    The National Weather Service predicts "widespread smoke" will turn to "widespread haze" by Wednesday as onshore winds return. Children, elderly folks and people with respiratory illness could experience scratchy throats, itchy eyes and coughs.
    Nvidia Announces GeForce RTX 20 Series Coming This September

    Nvidia Announces GeForce RTX 20 Series Coming This September

    This includes the GeForce RTX 2070 priced at $599 (USD), GeForce RTX 2080 for $799 and the GeForce RTX 2080 Ti for $1,199. The GeForce RTX 2080 Ti and GeForce RTX 2080 are expected to start shipping around September 20, 2018.
    The Pope is on the victims' side

    The Pope is on the victims' side

    He apologized this week for the damage inflicted on the victims but also cited his efforts to reach out to them in Pennsylvania. Around 100 of the accused priests had died while only two had been convicted of child sex abuse, the grand jury said.
  • Paul Ince: 'Manchester United a laughing stock under Jose Mourinho'

    Paul Ince: 'Manchester United a laughing stock under Jose Mourinho'

    And his mood will have worsened on Sunday as a limp United suffered a 3-2 defeat at the hands of Chris Hughton's Brighton . For Sanchez's sake, we hope it wasn't related to his new side venture as a catalogue model.
    Nicki Minaj slammed for calling herself the 'new' Harriet Tubman

    Nicki Minaj slammed for calling herself the 'new' Harriet Tubman

    Then, in a rather controversial move, the Queen performer likened herself to none other than Harriet Tubman and Rosa Parks . Minaj, seemingly delighted by the attention, took the opportunity to explain what she meant by her initial Tubman tweet .
    Davis Cup makeover plans given the go-ahead

    Davis Cup makeover plans given the go-ahead

    The ITF's main concern has been the scarce presence of the Big 4 - Federer, Nadal, Andy Murray and Djokovic - in Davis Cup ties. The four semi-finalists from the previous year and two wild-card teams would join them in the 18-team year-end event.
  • Kohli-Rahane salvage India from first day disaster at Trent Bridge

    Kohli-Rahane salvage India from first day disaster at Trent Bridge

    New batsman Ollie Pope fell for 10 when a genuine glance off Sharma was well caught down the legside by the 20-year-old keeper. Root held his ground, not convinced that the catch had been a clean one, while Marais Erasmus referred the matter upstairs.
    NYT Drops New Bombshell: Trump’s Lawyers Don’t Know What McGahn Told Mueller

    NYT Drops New Bombshell: Trump’s Lawyers Don’t Know What McGahn Told Mueller

    Mueller's investigation has resulted in several guilty pleas by people once connected to the Trump campaign for lying to the FBI. He also complained about a "disgusting new Board Member" at the Times , apparently a reference to the writer Sarah Jeong.
    Teen Hacks Apple, Has Excellent Folder Name

    Teen Hacks Apple, Has Excellent Folder Name

    The Age said customer data had been accessed, and that the boy managed to obtain customers' authorised keys - their login access. An AFP raid on the boy's home revealed two laptops with serial numbers matching those of devices which had accessed the system.
  • Melania Trump laments cyber bullying

    Melania Trump laments cyber bullying

    She later described Trump's advocacy against cyberbullying as "a honest campaign meant to help children". She is well aware of the criticism, but that will not deter her from doing what she feels is right.
    New Gmail Confidential mode now available on Android

    New Gmail Confidential mode now available on Android

    The feature is live now in Gmail , so you can check it out. - In the bottom right of the window, click Turn on confidential mode . The feature is now available for iOS and Android, but not yet accessible for G Suite customers, according to the post .

    OnePlus will sell the OnePlus 6T through T-Mobile in the US

    OnePlus will also sell unlocked versions of the phone in the US , which will be able to use other carriers such as AT&T . And for good reason: CNET explains today that the smartphone will be on sale at an american operator called T-Mobile.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.