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

US Fed raises benchmark interest rate to 2.25-pct

The Federal Reserve signaled its confidence Wednesday in the USA economy by raising a key interest rate for a third time this year, forecasting another rate hike before year's end and predicting that it will continue to tighten credit into 2020 to help manage growth and inflation.

The Fed also dropped a reference in its statement to the word "accommodative", although Chairman Jerome Powell later said policy was still accommodative.

The Fed removed language in its statement announcing the rate hike that described its monetary policy as "accommodative", signaling that the economy is strong enough to grow without help from the central bank.

The Fed on Wednesday (US time) lifted its short-term rate - a benchmark for many consumer and business loans - by a quarter-point to a range of 2 per cent to 2.25 per cent.

The Fed will give a big hint of what's coming when it releases its quarterly forecasts Wednesday. The U.S. dollar appreciated against all of the major currencies after the rate decision except for the Japanese Yen and Swiss Franc.

That's because the tariffs - and the resulting retaliation from America's trading partners - could weaken the US economy. And the unemployment rate sits at 3.9 percent, near its lowest level in 18 years.

John Williams, a long-time central banker and the newly installed president of the New York Federal Reserve Bank, earlier this month said the United States was experiencing a "goldilocks economy", meaning the Fed only needed to raise rates gradually.

After eight hikes since late 2015, the fed funds rate is now at the highest level since October 2008, just after the collapse of Lehman Brothers Holdings Inc.

New accuser says she witnessed sexual abuse by Kavanaugh
A third woman Wednesday lodged specific sexual misbehavior allegations against Supreme Court nominee Brett Kavanaugh . She also said that in 1982, she was a victim of such gang rape, while drugged, with Kavanaugh and Judge "present".

"Fed funds increases in September and December are as certain as can be", John Donaldson, director of fixed income at Haverford Trust, told CNBC.

"We've been hearing a rising chorus of concerns from businesses all over the country about disruption of supply chains, materials cost increases and loss of markets", Powell said.

"I would rather pay down debt or do other things", he added. I'm anxious about the fact that they seem to like raising interest rates.

Also, when Powell holds a press conference starting at 2:30 p.m. ET, he'll likely be asked about the risks of a trade war to the economy.

Trump has previously criticized the Fed for raising interest rates.

Saudi Arabia's central bank said it was raising its reverse repo rate by 25 bps to 2.25 per cent, and its repo rate by the same margin to 2.75 per cent. Bahrain's central bank raised its interest rate on its one-week deposit facility to 2.5 per cent from 2.25 per cent. Kuwait said it is keeping its key discount rate unchanged at 3 per cent. But he said that the economic impact of U.S. tariffs is "still relatively small". Ahead of Wednesday's statement, traders put the chance of a rate increase at 95%, according to CME Group. The benefits of tax cuts that took effect this year, along with increased government spending, for example, are widely expected to fade.

During his remarks Wednesday, Trump reiterated that Fed officials are raising rates because the USA economy is "doing so well".

Related News:

  • China rejects ‘unwarranted accusations’ of election meddling

    China rejects ‘unwarranted accusations’ of election meddling

    Add Donald Trump as an interest to stay up to date on the latest Donald Trump news , video, and analysis from ABC News. Mr Trump later took to Twitter to post photographs of newspaper extracts which he described as Chinese "propaganda".

    Seal, Octopus, Kayaker Make for Riveting Footage

    He said he wasn't sure who got the bigger fright, the octopus, the seal or himself. What happens when you drive a seal too far?
    TROPICS: Kirk redevelops back into tropical storm

    TROPICS: Kirk redevelops back into tropical storm

    Virgin Islands Territorial Emergency Management Agency Director Mona Barnes said the agency has been monitoring the storm. Hurricane center forecasters are giving it a 50 percent chance of development over the next 48 hours.
  • Here's all the changes to Fortnite's map for Season 6

    Here's all the changes to Fortnite's map for Season 6

    Fortnite is regularly played by more than 75 million people around the world and is the most viewed game on streaming site Twitch. With new locations and features like pets, this season will have plenty to offer for players of the absurdly popular game.
    How Legal Experts Reacted to SC’s Judgment on Adultery

    How Legal Experts Reacted to SC’s Judgment on Adultery

    The petitioners want Section 497 of the IPC, which punishes only a man for the offence of adultery, to be made gender-neutral. Legal experts and activists welcomed the judgment and lauded the court for striking down a 150 year old law.
    President Trump takes aim at Iran

    President Trump takes aim at Iran

    There were signs during Tuesday's speech that Trump's approach has worn thin among world leaders. "So true", Mr. He added that Trump not only disagreed with that resolution but said whoever implements it "will be punished".
  • United States judge Brett Kavanaugh faces fresh allegations

    The panel is scheduled to hold a hearing on Thursday on the accusations, ahead of a vote Friday on Kavanaugh's nomination. Kavanaugh, 53, has strenuously denied assaulting anyone and insists he is the victim of a "smear campaign".
    Duchess Meghan makes first royal solo outing for art exhibition

    Duchess Meghan makes first royal solo outing for art exhibition

    As you might imagine, there are a lot of cynics on Twitter enjoying the "woman closes own auto door" spectacle and weighing in with their own amusing takes.
    Trump says he’d ‘certainly prefer not’ to fire Rosenstein

    Trump says he’d ‘certainly prefer not’ to fire Rosenstein

    That's why he said he may call Rosenstein and "ask for a little delay for this meeting". Even if Rosenstein survives the week, it's not clear how much longer he'll be around.
  • 'N'Golo Kante was scared' - Eden Hazard's hilarious reason for scoring victor

    The game on Saturday [against Liverpool in the Premier League] is more important. He is happy getting two assists and the team winning.

    #FantasticBeasts: Harry Potter fans freak out over Nagini reveal

    In the trailer, Credence is shown in a circle and a performer contorts herself as he whispers, " Nagini " to her. In the Harry Potter universe, Animagi are skilled witches and wizards who can transform into animals at will.
    Arsenal boss Emery happy with 2-goal Welbeck: Contract talks?

    Arsenal boss Emery happy with 2-goal Welbeck: Contract talks?

    And Danny Welbeck is working with this commitment, and when he is playing with a performance like today, he is helping the team. Striker Danny Welbeck scored a first-half brace to put the Gunners in a strong position going in at the break.

Most liked

Cosby Will be in Prison’s General Population - Roland Martin/Celebs Weigh
Kathy Griffin recently unleashed about Bill Cosby's prison sentence, saying she thinks he is right "where he belongs". So far, the former Jell-O pitchman is being kept alone in a cell at the State Correctional Institution Phoenix.

Clemson QB Kelly Bryant to transfer after demotion
I certainly could have started him this week, which would have limited his options, but that's not how we operate here. But at the same time, I've got to do what's best for me. "But I wouldn't judge him for that".

Huge rift between Pogba and Mourinho at Man United — Sky Sports pundit
The post emerged at 10.28pm, minutes after Frank Lampard's Rams had dumped United out of the cup at the third round on penalties. Tune in next week to see the latest twist in the Pogba-Mourinho soap opera.

This Team ‘Trying To Be Creative’ To Acquire Jimmy Butler
His team went 47-35 with Butler last season, good enough for the eighth seed in the Western Conference and a rare playoff appearance.

Bill Cosby's new life as inmate NN7687 in 'state-of-the-art facility'
Bill Cosby is now officially known as inmate NN7687. " Bill Cosby took my attractive , healthy young spirit and crushed it". On Monday, Bill Cosby was sentenced to three to ten years in state prison for sexually assaulting a woman in 2004.

President Trump addresses UN General Assembly in NYC
Trump withdrew in May from the nuclear deal, which was forged under his predecessor, Barack Obama, in 2015. In the years since the deal was reached, Iran's military budget grew almost 40 percent.

Liverpool 1 Chelsea 2: Magical Hazard condemns Reds to first defeat
And Chelsea beat Liverpool 2-1 thanks to a stunner from Eden Hazard at Anfield . The Belgian winger nutmegged one defender before accepting a return pass.

Thai police discover bodies of British man, Thai wife
Police have arrested three Thai men in connection with the deaths. "They said that the victims were then buried in the garden". The three men who carried out the murders said Satchakit, who lived locally, had taken away the bodies to bury them.

Venezuela president crashes United Nations assembly to 'defend his country'
Inflation is running at 200 000 percent and basic foods and medicines, like rice and antibiotics, are increasingly hard to obtain. However the USA leader also told journalists "all options are on the table" because "I want to see Venezuela straightened out".

Tiger winning adds to Ryder Cup buzz
Kim Kaufman, who just wrapped up her fifth LPGA season, said watching Woods play while growing up inspired her to play golf. Bridgestone Golf, which signed Woods in 2016, posted a tribute video on social media moments after he won.

Duke ranks 18th in Times Higher Education world rankings
The rankings, released on Wednesday, show Oxford continues to hold the first place, Cambridge second, and Stanford third. It overtook the Indian Institute of Technology-Bombay, which slipped from the 351-400 band to the 401-500 band.

Russian spy poisoning: Skripal suspect's 'real identity revealed'
Alexander Petrov, left, and Ruslan Boshirov, charged with the attempted murder of ex-spy Sergei Skripal and his daughter Yulia . Russian President Vladimir Putin said this month he knew who the two suspects were, and that they were "civilians, of course".

Trump backs Supreme Court pick but 'could change mind'
Mr Trump said he was sceptical because he personally had been the target of "false statements" in the past made by various women . Sheldon Whitehouse that Kavanaugh sexually assaulted a woman the resident described as a "close acquaintance" in August 1985.

"X-Men: Dark Phoenix" Teaser Reveals Official Trailer Will Be Released Tonight
From the looks of it, Jean's growing power as a result of her space mission and her starting to be corrupted as the Phoenix. The first trailer for Dark Phoenix has arrived and it's looking like the first part of the title will particularly apply.

United States rate hike in the cards as Fed holds policy meeting
The rate hike was the third this year and the seventh in the last eight quarters. There were no dissents in the Fed's policy statement.