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Weekly comic - Trump Gets His Way as Fed, Powell Cave on Rate Hikes

Published 03/21/2019, 09:03 AM
Updated 03/21/2019, 09:03 AM

Investing.com - The Federal Reserve all but swore off raising interest rates again this year – a swing that could signal the end of its three-year monetary policy tightening cycle.

As they kept the federal funds rate steady in a range of 2.25% to 2.5% on Wednesday, Fed officials suggested no rate increases would come this year — after indicating in December that two could take place.

The U.S. central bank also indicated it intends to end the reduction of its massive $4.2 trillion balance sheet by September.

That should please President Donald Trump, who has repeatedly criticized Fed Chair Jerome Powell for raising interest rates.

The dovish outlook on monetary policy was attributed to signs of slowing U.S. economic growth even as the labor market remains strong.

Latest comments

All US presidents do whatever they can to extend market rallies and goose the economy. Trump's tax cuts gave the market a boost and he forestalled recession, BUT when the market corrects and makes last December's low look like a walk in the park, anti Trump forces will blame "Trump's brand of narco capitalism" as the culprit! Remember folks, it's a big, rigged parlor game, a free wheeling casino...and WHEN it crashes, investors will look back in awe of the amazing run... And unlike 2008, I doubt the banksters can jump the shark with another US taxpayer bail-out...
Trump certainly made his mark here and probably for the best. Trump haters are so fragile...
So it is not just Turkey’s Erdogan to make us question the independance of central banks.
I think Trump got what he wanted from the Fed but for a different set of reasons. I also don't think he'll be too happy that they lowered their economic outlook for the year
Mr Vector you got that right  MAGA
I'm just calling it how I see it. And I'm not even a Trump supporter
Powell really wanted to hike the U.S. into a recession. Luckily, Trump stopped him. #MAGA
A recession that will be caused by Trump’s backward trade policies punishing the US consumer and farmers...
That depiction of Trump is way too flattering.
They didn't cave they had to hold on the rate increase to try and offset Trumps lack of an economic policy and his insistance on his tariff stance. Remove the tariffs allow the economy to readjust and watch higher economic growth return. Then the fed can allow rates to rise to a more normal 4% level. Anybody getting into the bond market now will watch their market value drop as rate again rise.
And the environment that we all live in.
Boy I hate we’re they put the post button I meant treat their employees and the environment with respect. Sorry for that.
While we're on a roll, why not toss caution to the wind also, and just let China control our economy. After all, what does Trump know about money / buying and selling? Ha.Maybe, the scoffers need to just get out of the way of progress, and let the man work.Oooh ... that's right ... if he succeeds, it will make everyone who has been running the show for the past couple of decades look incompetent.
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