Published: Thu, September 27, 2018
Markets | By Otis Pena

Trump 'not happy' with Fed's interest rate hike

Trump 'not happy' with Fed's interest rate hike

The Federal Reserve raised interest rates on Wednesday to between 2 and 2.5 percent, a move that is expected to push up the cost of borrowing for commercial and residential loans.

The Fed sees the economy growing at a faster-than-expected 3.1 percent this year and continuing to expand moderately for at least three more years, amid sustained low unemployment and stable inflation near its 2 percent target. Those show that the Fed's policymakers think it will raise rates five more times by the end of 2020, which bring rates up to a range of 3.25 to 4.25 percent.

"Household spending and business fixed investment have grown strongly", the Fed's rate-setting body said in a statement that used a variant of the word "strong" five times.

Wednesday's rate hike was the third this year and the seventh in the last eight quarters.

The rate hike came as no surprise to economists and other market experts.

Iran says Trump is why oil prices are now so high
Crude prices have also been affected by unexpected disruptions in several countries, including Libya, Nigeria and Venezuela. If Donald Trump wants cheaper crude like he declares, America should stop interfering in Middle East affairs, he said.

Trump has made it clear he thinks Powell is going to hurt economic growth by raising rates.

Federal Reserve Chairman Jerome Powell and the Federal Reserve headquarters in Washington, D.C. In recent years, the Fed's statement has explicitly said that "the stance of monetary policy remains accommodative", meaning aimed at boosting growth.

It's had that language in its rate decisions for the better part of a decade, but Wednesday's announcement removed that line completely - which suggests the Fed is no longer in a mood to keep rates low. Did that mean the Fed would shade toward being less aggressive or more?

"Watch their assessment of the underlying strength in the economy".

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