Wall Street rises ahead of Fed interest rate decision

A trader at the New York Stock Exchange

A trader at the New York Stock Exchange

"The market is fearing a global slowdown and is still anxious about the Fed, even though they dragged (New York Federal Reserve President John) Williams out to try to cushion what Chairman (Jerome) Powell said on Wednesday".

"(Williams' comments) helped the markets for a while early on, and then it was just a sell-off after that", Ghriskey said.

"There's an old joke: the beatings will continue until morale improves", said Keith DeGreen, chief executive officer at DeGreen Capital Management LLC in Scottsdale, Arizona. Most Fed governors said they expect to hike rates only twice next year, after hiking four times this year. Volatility in USA equities surged to a 10-month high on Friday and US exchanges just reported the heaviest two-day volume since 2011. Betting on minute-to-minute swings has been a good way to go broke recently, with up-and-down moves in the Dow averaging around 700 points last week. At the same time, how many stories about this White House turn out to be patently false or just turn out to be something else. "After all, he's been complaining about him for months now".

However, Mr Trump - who appointed the Fed's chairman Jerome Powell - has repeatedly blamed the central bank for unsettled markets and dismissed analysts who cite other factors, such as rising trade tariffs.

On Friday, media reported citing sources that Trump was considering a possibility of firing Powell over dissatisfaction with the decision of the US Federal Reserve to increase the benchmark interest rate.

The president has talked privately about firing Powell many times in the past few days, it said, citing two of the people. It's to the point where he's considering firing Powell.

"I think from this point forward, we're going to be letting the data speak to us", Powell told reporters.

"We see slowing economic and earnings growth and a carousel of concerns", said Keith Lerner, chief market strategist at SunTrust, in a note to investors Friday.

"His challenge is to communicate his way through this shift from forward guidance to data dependence", Greene said.

"The market had its worst week in 10 years because of Powell", said Jim Bianco, president of Bianco Research LLC in Chicago.

The miserable performance reflects deepening fears on Wall Street of an economic slowdown and overly-aggressive Federal Reserve. The stock market was consistently negative, declining by a maximum of about 3.8%.

"Despite the Fed hanging onto its positive outlook, we do know that the Fed will only go forth and hike if data coming out of the United States improves", he wrote. "Right now they are huddled and discussing why the stock market sold off".

Those are more acknowledgments that rates are moving closer to the point where policy makers will at least take a break from the quarterly procession of hikes they pursued throughout 2018.

USA stocks slid on Thursday, with the Nasdaq on the cusp of confirming bear market territory, as the Federal Reserve's plan to continue its balance sheet reduction and the threat of a partial government shutdown fuelled investor anxieties. On the other hand, managed well, the news conferences could provide a valuable tool for Powell to shape how investors interpret the Fed's policies. "People would become more convinced that the president has become unhinged".

Even more significant though, is that it may not even be legal for the president to fire the chairman merely for having a difference of opinion.

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

In the morning, the Dow had jumped almost 400 points after Williams told CNBC that the Fed would pay close attention to the economy as it considered raising rates in the future.

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