• News
  • Finance

Trump steps up his attacks on Federal Reserve's rate hikes

Trump steps up his attacks on Federal Reserve's rate hikes

It is not a solicitation to make any exchange in commodities, securities or other financial instruments.

Steven Mnuchin, Treasury Secretary, echoed that sentiment, referring to yesterday's stock market crash as a "correction".

In Australia, the benchmark S&P/ASX200 index closed down 2.74 percent. It has fallen almost 5 percent from its all-time closing high on September 20.

The S&P 500 posted its fifth straight decline, plummeting almost 3.3%.

Mr. Trump often points to the stock market in touting the economic successes of his administration. Unemployment in September fell to its lowest rate in almost half a century.

And the housing sector is especially sensitive to the longer-term interest rates set on the bond market, which in turn determine mortgage rates. As there is a bigger demand for money at lower interest rates, the rates, under the law of supply and demand, would begin to rise. Holding interest rates at post-crash lows amid full employment and after almost a decade of growth, as Trump evidently would prefer, really would have been insane. The Fed has raised interest rates eight times since late 2015. It had been anchored at virtually zero for seven years following the 2008 financial crisis.

The trade war that Trump seems willing to contemplate would cause enormous disruption to the US economy, many of whose industries have organized themselves around supply chains that extend to China.

"Investors are laser-focused on rising bond yields as this has caused agita for both fixed-income as well as equity investors over the past week", Daniel Ives, managing director of equity research at Wedbush Securities, said in an email to CBS MoneyWatch. Simply put, stocks are sinking as Treasury rates spike.

The Fed has been revising its own growth forecasts higher through the year, as the impact of recent tax cuts and increased federal spending have been felt.




Mnuchin was interviewed in Bali, Indonesia, where he is attending global finance meetings including the annual meetings of the International Monetary Fund and the World Bank along with Powell, who is representing the Fed at the meetings.

Now, if rates continue to move higher, the USA government could have to pay a lot more interest on its debt.

Chinese representatives said they did not want a further depreciation of the yuan exchange rate, Mnuchin said.

In effect, higher mortgage rates could depress the rate of price appreciation of houses, as homebuyers cannot bid as aggressively for properties as they could when rates were lower.

But the falls are now spreading beyond technology stocks.

The Dow plunged 832 points, or 3.2%, on Wednesday. That means investors are demanding more compensation than they did a few weeks ago for tying their money up for many years.

As a result, bond funds have logged losses recently, though generally milder than for stock funds.

We're in one of the longest expansions on record. "The Fed is going loco, and there is no reason for them to do it and Im not happy about it".

Should I panic about rising rates? But some estimate the neutral level could be higher in the short run according to reporting by the Wall Street Journal's Michael S. Derby. The VIX, which measures how much volatility investors expect from the S&P 500 over the next 30 days, was up more than 35 percent at one point on October 10. The Bank of England raised United Kingdom rates in the summer, but right now is not looking like it has the guts to follow in the footsteps of the Fed, partly because of uncertainty still surrounding Brexit. Or they could touch off spiraling prices through inflationary policies. If rates rise slowly, that higher income could offset the price drops and leave investors with positive returns. The Fed under his hand-picked chairman Powell has been gradually raising rates as the economy has strengthened to prevent a run-up in inflation. That would help the case for holding onto stocks. And this week, he offered his sharpest rebuke yet of the Federal Reserve. But for all his talk of how easy trade wars are to win, Trump has little to show for his efforts.

Leave Your Comment

Leave Your Comment


Latest News

  • Sajid Khan Accused Of Sexual Harassment By These Three Women

    Sajid Khan Accused Of Sexual Harassment By These Three Women

    Khanna had earlier voiced support for Dutta, saying a healthy working environment is a fundamental right. She further wrote that Sajid walked out of the room to bring some CDs he wanted to show her.
    300 miles of Florida coastline on hurricane alert

    300 miles of Florida coastline on hurricane alert

    A hurricane warning is in effect for Florida cities including Tallahassee, Panama City, Apalachicola and Pensacola. Rick Scott issued a state of emergency for 26 counties on Sunday, as member station WFSU reports .
    US First Lady Melania Trump wraps up solo African tour in Egypt

    US First Lady Melania Trump wraps up solo African tour in Egypt

    She was welcomed by Egyptian First Lady Intissar Amer al-Sisi, who wore an ankle-length blue dress and matching headscarf. US First Lady Melania Trump has found herself in the middle of yet another controversy related to her attire.
  • Sancho's England debut impresses Kane and Dier

    Sancho's England debut impresses Kane and Dier

    For the players, autopilot will have kicked in once the game began, with the lack of noise unlikely to affect their focus. The football authorities would be well advised to remember the game "without fans is nothing". "Footballers play to win".
    Google Hardware Event Tomorrow: 7 Products Expected to Be Unveiled

    Google Hardware Event Tomorrow: 7 Products Expected to Be Unveiled

    According to the popular tipster, Roland Quant, a suspicious device rumoured to be the Pixel Mini has been spotted on GFXBench. Google Home Hub , the upcoming smart display speaker that is based on Google Assistant , will be made available on October 22.
    Trump ‘participated in outright fraud and dubious tax schemes in 1990s’

    Trump ‘participated in outright fraud and dubious tax schemes in 1990s’

    The records did not include Trump's personal tax returns, which he has refused to release, breaking with decades of precedent. The report claims Mr Trump was getting the equivalent of $1m a year from his father shortly after he graduated from college.
  • Jose Mourinho's touchline comments may be investigated by lip reader

    Jose Mourinho's touchline comments may be investigated by lip reader

    The victor , which will be voted for by a global panel of 176 football journalists, will be announced on December 3. United are eighth in the Premier League , seven points behind leaders Manchester City.

    Senate set to vote on Kavanaugh confirmation Saturday

    Vice President Mike Pence planned to be available Saturday in case his tie-breaking vote was needed, which now seems unlikely. She told reporters on Friday that Kavanaugh is "a good man" but maybe "not the right man for the court at this time ".
    Cardi B hands herself over to police

    Cardi B hands herself over to police

    The incident is reported to have happened on August 29 during a Migos performance at the club which Cardi attended. And she's a featured performer on the top Billboard song at the moment , Maroon 5's "Girls Like You".
  • Maharashtra government to cut diesel prices by Rs 1.50 per litre

    Maharashtra government to cut diesel prices by Rs 1.50 per litre

    After the minister's announcement, Jharkhand, Gujarat, Chhattisgarh and Maharashtra too announced a reduction in fuel prices . Jaitley said he on Wednesday met Oil Minister Dharmendra Pradhan and inter-ministerial consultations continued on Thursday.
    Jose Mourinho attacks media 'manhunt' after Newcastle win

    Jose Mourinho attacks media 'manhunt' after Newcastle win

    They're already nine points behind title favourites and rivals Manchester City and Liverpool and given the sheer scale of investment since Mourinho took charge, the gap should not be so big at this stage.
    Trump to Female Reporter: I Know You're Not Thinking, You Never Do

    Trump to Female Reporter: I Know You're Not Thinking, You Never Do

    The original answer, according to the official White House transcript, was no. "I wouldn't mind that at all", Trump said. The president said he'd circle back to her question once he had responded to all the questions about the trade deal.
  • Hurricane Michael kills one in Florida: county official

    Hurricane Michael kills one in Florida: county official

    She was an 11 year old girl and was killed when some type of debris fell on the home, the Atlanta Journal-Constitution reported . The storm had top sustained winds of 60 miles per hour (96 kph) and was moving to the northeast at 20 miles per hour (32 kph).
    After an undisclosed security breach was revealed, Google+ will be shutting down

    After an undisclosed security breach was revealed, Google+ will be shutting down

    Google says that like other tech companies, it has encouraged third-party developers to "build on top of our various services". Google+ was heavily promoted after its 2011 launch , in the hope of overtaking Facebook in the early days of social media.
    Rockies Cubs NL Wild Card Game free live stream, watch

    Rockies Cubs NL Wild Card Game free live stream, watch

    The Rockies and Cubs battled in extra innings, but neither offense could get going until the Rockies struck in the 13th inning. Starting on three days' rest for the first time in the pros, Freeland struck out six in 6 2/3 scoreless innings.
  • FortisBC asks customers to reduce gas use after pipeline rupture

    FortisBC asks customers to reduce gas use after pipeline rupture

    The line has been shut down and an investigation has been launched to determine the cause of the incident, the company said. The explosion has knocked out oil refineries in Washington state that rely on natural gas to power the facilities.
    Aaron Ramsey confirms he will remain at Arsenal until his contract expires

    Aaron Ramsey confirms he will remain at Arsenal until his contract expires

    Ramsey is now on global duty with Wales, who face the Republic of Ireland at the Aviva Stadium on Tuesday. We thought we were in a position where we had agreed a deal but that's no longer the case.
    Brazilians cast ballots to elect new President

    Brazilians cast ballots to elect new President

    But the election largely turned on domestic matters, on which Bolsonaro has alienated almost as many people as he has attracted. Once a rising star in the developing world, Brazil has been mired in severe recession and political turmoil since 2015.

Breaking News



Recommended

Melania Trump says she ignores rumors of Trump's infidelity

Melania's response was basically to channel Mariah Carrey's "I don't know her" comment about Jennifer Lopez . EST for more of the ABC News special " Being Melania - The First Lady".

Florida: Grim search through ruined landscape after Michael

An 80-mile (130-kilometer) stretch of Interstate 10, the main east-west route along the Panhandle, was closed. Klotzbach said scientists will use Michael to better study the effects of wind shear on tropical storms.

May to hold Brexit War Cabinet to agree backstop plan

Cabinet Office Minister David Lidington is also due to hold Brexit meetings with figures from the UK's devolved administrations on Thursday.

Turkey believes missing Saudi journalist was murdered at Saudi consulate in Istanbul

In his first remarks about the disappearance, President Trump told reporters Monday afternoon that he was concerned . He has been critical of some policies of the crown prince and Riyadh's intervention in the war in Yemen.

Google to shut down Google

So, for example, your default messaging app will have access to SMS permissions, and the default dialer can access Call Logs. More information will be available over the coming months, including ways that users can download and migrate their data.

Interpol president Meng Hongwei reported missing during trip to China

Rights groups previously said that Beijing could use Meng's position to arrest and deport its critics overseas . Business Insider has contacted the French Ministry of Justice and the Chinese Embassy in London for comment.

Amazon announces the world’s most powerful streaming media stick yet

A bundle featuring the Amazon Fire TV Cube and the new Alexa remote can be pre-ordered for $119.99 and ships on October 31. While that device didn't support Dolby Vision , Amazon claims that its customers preferred the stick design.

GOP Sen. Jeff Flake criticizes Trump's 'appalling' mockery of Christine Blasey Ford

In a Twitter post on Wednesday, Trump did not back away from his rally comments, instead attacking Kavanaugh's Democratic critics. There are facts that she can not remember: "how she got home, how she got there, where the house was, what the date was".

OnePlus 6T Will Have Dual Rear Cameras According to New Leaked Renders

The device is expected to launch sometime this month, joining OnePlus' never-settling collection of flagship Android devices. The phone has also grown in size compared to its predecessor which is mainly owing to the bigger battery on the OnePlus 6T .

Amazon Raising Minimum Wage For US Workers To $15 Per Hour

Amazon is raising the minimum wage for all of its workers to $15 an hour next month, the company announced on Tuesday morning. Amazon has more than 20,000 employees in Texas and thousands will qualify for the wage increase. "I want to congratulate Mr.