Tag: Federal reserve

Federal Reserve expresses concern about U.S. economy and signals inter

Washington Post logoTrump has urged the central bank to take such action for months.

The Federal Reserve on Wednesday raised concerns the economy is slowing and sent its strongest signal to date that it could act soon to cut interest rates, a move that would plunge the central bank into unusual territory.

Business investment is slowing, uncertainty has increased and the U.S. economy is growing at a “moderate” pace, the Fed said Wednesday in its official policy statement, a notable downgrade from last month, when the central bank characterized the economy as “solid.”

The Fed did not cut rates Wednesday and did not specify exactly when it would. But nearly half of Fed leaders now predict rates will fall by the end of the year, a significant change from March, when none of the 17 Fed policymakers anticipated a cut this year. Seven of the 17 are forecasting two rate decreases by the end of 2019, according to projections also released Wednesday.

View the complete June 19 article by Heather Long on The Washington Post website here.

Trump says Moore withdraws from Fed consideration

President Trump said Thursday that conservative commentator Stephen Moore has decided to withdraw from consideration for the Federal Reserve Board amid staunch opposition from Senate Republicans.

“Steve Moore, a great pro-growth economist and a truly fine person, has decided to withdraw from the Fed process,” Trump tweeted.

Trump praised Moore for having “won the battle of ideas including Tax Cuts and deregulation” and said he asked him “to work with me toward future economic growth in our Country.”

View the complete May 2 article by Jordan Fabian and Sylvan Lane on The Hill website here.

Trump Owns the Economy Now, for Better or Worse

President Donald Trump, pictured here with (from left) John Barrasso, John Thune, Mike Pence, Roy Blunt and Mitch McConnell,. Credit: Alex Brandon, AP Photo

WASHINGTON — President Trump is getting exactly what he wants on the economy, but it may not last.

The Federal Reserve has abruptly stopped its march toward higher interest rates, as Mr. Trump demanded. The tax cuts he signed in late 2017 are in full swing. His attempt to rewrite the global rules of trade are underway, and he proclaims himself happy with the array of new tariffs he has imposed. His recent comments suggest he is unconcerned about slowdowns in China and Europe, which he considers economic rivals.

But while Mr. Trump points with pride to last year’s economic growth and promises even faster growth to come, there are signs that his most dependable talking point is eroding. On Thursday, the Commerce Department issued a downward revision of its estimates for growth in the fourth quarter, pushing one measure of the full year’s growth down as well.

Forecasters outside the White House, including officials at the Fed, expect growth to slow even more this year. Economic data suggests that slowdown is already underway in the first quarter. Manufacturing is losing some of its steam from last year’s rapid growth, and job creation is also moderating. Chief executives of some of the nation’s biggest companies see investment, hiring and sales growth all slowing this year. Three-quarters of business economists say they are more worried about growth undershooting their forecasts than overshooting it, and half have revised those forecasts downward for this year.

View the complete March 28 article by Jim Tankersley on The New York Times website here.

Trump Fed Pick Stephen Moore Owes $75,000 to IRS, Court Document Says

Stephen Moore, whom President Donald Trump said he’ll nominate for a seat on the Federal Reserve, owes more than $75,000 in taxes and other penalties, according to the U.S. government.

A federal tax lien filed in the circuit court for Montgomery County, Maryland, where Moore owns a house, says that the government won a judgment against Moore for $75,328.80. The January 2018 filing said it was for unpaid taxes from the 2014 tax year and could accrue additional penalties and other costs.

An IRS spokesman said he was prohibited by law from commenting on the case. A White House spokesman declined to comment. Moore referred questions about the tax debt to his wife, Anne Carey.

Fed Nominee Moore: Unemployment Insurance Is ‘Paid Vacation’

Trump on Friday announced that he nominated a conservative think tank fellow, who has criticized everything from paid sick leave to unemployment insurance, to a position on the Federal Reserve Board — a powerful position that has say over monetary policy in the United States.

The nominee, Stephen Moore, is a regular on Fox News, where he spouts crazy economic theories including that unemployment insurance amounts to “paid vacation” for job seekers.

“Extending unemployment benefits is actually bad for the economy,” Moore, a Fox News contributor, said on air in 2014. “It encourages people to stay out of the work force, it’s like a paid vacation for people and it’s actually a tax on employers.”

View the complete March 23 article by Emily Singer on the National Memo website here.

Trump’s Fed feud roils markets, alarms Republicans

President Trump’s intensifying attacks on Federal Reserve Chairman Jerome Powell are having a destabilizing effect on financial markets and rattling Republican lawmakers.

Trump’s criticisms of the central bank’s chief policymaker kicked into high gear Monday, not long after Treasury Secretary Steven Mnuchin tried to reassure markets by insisting Trump has no intention of firing Powell.

Trump has undercut that claim by blaming the Fed for market volatility and recent economic woes.

View the complete December 24 article by Alexander Bolton on The Hill website here.

Federal Reserve votes to ease rule aimed at preventing big banks from making risky financial bets

The following article by Renae Merle was posted on the Washington Post website May 30, 2018:

Federal regulators on Wednesday approved a broad proposal easing financial crisis-era regulations on risky trading, delivering Wall Street one of its biggest victories yet in the Trump era.

The changes will give big banks, including Goldman Sachs and JPMorgan Chase, a reprieve nearly a decade after risky trading was blamed for contributing to the near collapse of the U.S. financial sector. It will also provide another boost to an industry already reporting record profits — $56 billion during the first three months of this year. Continue reading “Federal Reserve votes to ease rule aimed at preventing big banks from making risky financial bets”