Published: Fri, October 19, 2018
Business | By Tara Barton

What Trump Says Is the Biggest Threat to His Presidency

What Trump Says Is the Biggest Threat to His Presidency

Speaking to the Economic Club of New York, Mr. Quarles said his outlook hasn't changed much since February.

Quarles offered an optimistic perspective on economic growth in the USA, saying that "strong growth" could be sustained because of the room to improve productivity.

"This gradual approach would balance the risk of tightening monetary policy too quickly, which could lead to an abrupt slowing in the economy and inflation moving below the Committee's objective, against the risk of moving too slowly, which could engender inflation persistently above the objective and possibly contribute to a buildup of financial imbalances", the minutes said.

The official also said it is quite possible the US can sustain the sorts of growth levels it has been recording lately. Quarles reiterated that he is "optimistic about the potential of the economy". "Because the Fed is raising rates too fast". It means Fed officials should "chart a course that is stable, gradual and predictable", and follow that "unless some strong and steady signal requires a firm but moderate correction". Critics have expressed concern that his continual attacks on the Fed, which began in the summer, threaten its need to operate free of political pressure from the White House or elsewhere to properly manage interest rate policy.

President Donald Trump has criticised recent Fed rate increases, arguing that they threatened economic growth.

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It will further expand its business in North America to San Francisco, New York, Los Angeles and Chicago. In January it bought AerServ , a free mobile mediation and revenue management platform, for $90 million.

"The first rule taught to us as young pilots was, 'Don't chase the needles, '" the amateur pilot said.

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

As a result, Bullard said the federal funds rate should stay where it is now, at a range of between 2.00 per cent and 2.25 per cent, until something clearly changes for better or worse. The central bank has raised its key policy rate three times this year and is expected to do so again before year's end.

"The job of the Fed is to remain focused on the facts of the economy and be independent from the administration", Quarles said. Auto loan rates are at a nine-year high, and 30-year fixed mortgage rates recently climbed to their highest level in seven years.

But Mr. Quarles observed that the USA workforce becoming more educated may have upended that relationship. Along with low unemployment, inflation is roughly at the Fed's 2 per cent target.

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