Fed’s Rate Rike Pause Keeps US Growth on Track

Fed’s Rate Rike Pause Keeps US Growth on Track

The Fed’s decision to stop raising interest rates puts a “fundamentally healthy” US economy on track to further growth, Minneapolis Federal Reserve Bank President Neel Kashkari indicated Sunday.

“I think we still have room to run in the US economy,” Mr. Kashkari said at a town hall at a church in Long Lake, Minnesota.

“The US economy is fundamentally healthy,” he added. The event was closed, but an audio recording was distributed afterward.

“We at the Fed cannot control if Europe has a crisis, or if China has a hard landing, but we can control our own mistakes; so if we can avoid tapping the brakes prematurely, I think the expansion can continue.”

Last week, the Fed canned it promise to keep raising rates, and instead pledged patience on further policy change. The dovish shift was cheered by financial markets.

The decision delivered to President Trump what he has been demanding in Tweets and interviews for the past several months, a Stop to what he termed the Fed’s “crazy” round of interest rate hikes that in his view were undercutting the growth he has sought to foster.

The Fed has been raising rates since December 2015, including 4X last year, to a current range of 2.25 to 2.5%.

Mr. Kashkari’s comments put a positive shine on last week’s FOMC decision

Have a terrific week.

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