Trump Says It Is 'Incredible' Fed Is 'Even Considering' Another Rate Increase
December 17 2018 - 9:40AM
Dow Jones News
By Alex Leary
President Trump argued Monday on Twitter that it was
"incredible" that Federal Reserve policy members were considering
raising interest rates again, continuing his public campaign
against tighter monetary policy.
The Fed will conclude its final policy meeting of the year
Wednesday. Analysts widely expect the central bank to raise
short-term interest rates, but the focus will be on the outlook for
next year. Volatile markets and mixed inflation data have amplified
investors' doubts about how many times the Fed can raise rates.
"It is incredible that with a very strong dollar and virtually
no inflation, the outside world blowing up around us, Paris is
burning and China way down, the Fed is even considering yet another
interest rate hike," Mr. Trump tweeted. "Take the Victory!"
Private economists surveyed by The Wall Street Journal have
tempered their expectations for the path of interest rates next
year, and many foresee the Federal Reserve cutting rates starting
in 2020. Economist have pointed to the housing market, trade
tensions with China and others, and lower inflation as possible
reasons for the Fed to adopt a wait-and-see approach early next
year.
Mr. Trump has spent months criticizing the Fed. He blamed the
Fed for October's stock-market selloff, calling the central bank
"out of control, " and said that Fed Chairman Jerome Powell seemed
to enjoy raising rates. He later called the Fed "a much bigger
problem than China," referring to the trade battle.
Write to Alex Leary at alex.leary@wsj.com
(END) Dow Jones Newswires
December 17, 2018 09:25 ET (14:25 GMT)
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