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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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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