US Fed officials signal further gradual rate hikes

Трамп назвав ФРС головною загрозою своїм економічним успіхам у США

Трамп назвав ФРС головною загрозою своїм економічним успіхам у США

The Federal Reserve should continue raising its interest rate gradually since the outlook of the US economy could be favorable, a senior Fed official said Thursday.

Participants in the Fed's rate-setting committee also "generally anticipated that further gradual increases" in short-term borrowing costs "would most likely be consistent" with the kind of continued economic expansion, labor market strength, and firm inflation that majority are anticipating, the minutes showed.

Gold prices edged lower early Wednesday as equities gained and the dollar firmed amid waning risk-averse sentiment, with the market awaiting minutes from the US Federal Reserve's latest policy meeting for fresh clues on the pace of interest rate hikes.

Stock markets mostly dipped on Thursday on the news that some policymakers at Federal Reserve think interest rates should continue to be raised until they are slightly restrictive.

Trump made his comments in an interview with Fox Business Network's Trish Regan.

He says: "My biggest threat is the Fed".

Interest rate futures are now pricing in an 83 percent likelihood that the Fed raises rates in December, according to the CME Group's FedWatch Tool, the fourth hike this year.

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The release of the minutes from the Fed's September policy meeting is due at 1800 GMT, Wednesday.

Asked about his decision as president to replace Janet Yellen with Powell, Trump said: "Can I be honest, I'm not blaming anybody".

In Tuesday's interview, though, Trump said of his other nominees for the Fed, "I put a couple of other people there I'm not so happy with too but for the most part I'm very happy with people". The president also appointed two of the three other policymakers on the Fed's powerful Board of Governors, Randal Quarles and Richard Clarida.

Emerging market assets were weighed down by the rising dollar and concerns about higher US interest rates.

Randal Quarles, the USA central bank's vice chair of supervision, who rarely discusses monetary policy, said he was optimistic about the economy's prospects, and that calls for continued "stable, gradual, and predictable" policy tightening. "There's no law against that, but I don't think it's wise".

"Precisely because of the uncertainty around the course inputs, the right strategy was to set a course based on your knowledge of the destination, winds, and performance of your plane; communicate that course clearly to air traffic control so everyone knew what you were doing; and then stick to that course steadily even as the course needle might waver from side to side across your instrument", he said.

However, the same Fed minutes also noted global growth concerns and worries the United States dollar could sink lower, explaining the somewhat hawkish view on U.S. markets overnight.

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