U.S. Federal Reserve Chairman Jerome Powell said on August 24 that the economy is strong and there was no clear sign of inflation moving above the central bank's 2 percent target. While it is possible to get policy wrong by relying too much on these variables, the paper says it is also possible to make an error by discounting them entirely.
It provides intellectual support for the Fed to continue on its policy path, said Derek Tang, an economist at LH Meyer Inc., an economic-forecasting firm.
Questioning Fed actions is normally off limits for U.S. politicians, since it could raise fears central bankers would feel political pressure and fail to act to head off rising inflation. Kaplan said he foresees three to four more rate hikes over the next nine to 12 months.
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Rivera told investigators that he saw her running, exited his vehicle, and started running alongside her, cops said. And Iowa's two GOP U.S. senators called the death a tragedy that "could have been prevented".
While it might seem odd that there is debate over whether a 2 percent interest rate is too high, it should be remembered that the key rate spent years at zero percent following the financial crisis.
The talks between the two nations ended as their trade war escalated on Thursday after a new round of US tariffs kicked in on $16 billion worth of imports from China, followed immediately by reciprocal tariffs from China.
The Nasdaq rose 0.9 per cent to 7,945.98, also a fresh record, while the Dow Jones Industrial Average gained 0.5 per cent to 25,790.35, about 825 points below its all-time high.
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They asked if I had sheet music and a song prepared. "And you know, I had a baby, I carried the baby". I will sing it a cappella.' I could see they didn't take me seriously.
In a separate interview with CNBC, Cleveland Fed President Loretta Mester took the opposite view, saying she still thinks raising rates gradually is appropriate. On Thursday, two top Fed officials made clear Thursday that Trump's criticism won't affect their decisions on whether to continue raising rates.
Though Powell chose not to mention Trump's criticism, other Fed officials asserted that the president's complaints about rate hikes would have no effect on their policymaking.
Powell's remarks about inflation were seen by some as a sign that the Fed had little need to push rates above their perceived neutral rate, a level of equilibrium for economic growth. The bank made a total of seven rate hikes since December 2015, three coming past year. Most Fed watchers foresee two more hikes this year - next month and then in December. "I'm now at 2.75 percent to 3 percent for the year, probably closer to 3 percent", Mester said.
After the June rate hike, the Fed's policy rate now stands in a range of 1.75 per cent to 2 per cent.
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US President Donald Trump has responded to speculation that he might be impeached by warning that any such move would damage the economy.