It’s ‘quite possible’ the Fed is divided amid Trump's attacks: Economist

It’s ‘quite possible’ the Fed is divided amid Trump's attacks: Economist

"And you've got others, like [Boston Fed President Eric] Rosengren, who we heard from this week, who feel quite comfortable with the current state of the economy".

Some chipmakers rose on Monday's news the Trump administration delayed enforcement of export curbs on USA technology sales to Chinese telecom equipment maker Huawei Technologies Ltd. Qualcomm added 1.6%.

The differences, in minutes released on Wednesday, come as Donald Trump presses for a one percentage point cut.

"Doing great with China and other Trade Deals", the president tweeted.

He renewed his calls on Fed officials to slash interest rates to boost the economy.

Analysts will be hoping that Mr Powell can provide more clarity on Friday when he is due to give a speech during a meeting of global central bankers at the annual Jackson Hole meeting in Wyoming.

Federal Reserve officials were widely divided at their meeting last month when they made a decision to cut rates for the first time in a decade, with some arguing for a bigger rate cut while others insisted the Fed should not cut rates at all. "That would be a disappointment for markets who want the confirmation that this Fed is going to be acting aggressively in the coming months".

The minutes began with a lengthy discussion of the Fed's policy strategy review, which indicated that officials aren't ruling out any options, including an expansion of their policy toolkit. Currently, traders are pricing in a 100 percent chance of a rate cut during the Fed's upcoming September meeting.

"When you think about central banks and what did they did over the last recession, there's very little room left in the interest rate structure, unless you go negative to help the consumers and business - and their balance sheets are pretty big compared to 2007".

The chairman is trying to sustain a record US economic expansion at a time when uncertainty over Trump's trade policy is weighing on global growth. "Such growth potential, nearly like never before!"

The president said the central bank needs to "wake up".

But experts are unable to agree on whether he will announce further cuts or stick for now.

"I don't demand it, but if he used his head, he would lower them", he said of Mr. Powell. And Michelle Girard, chief US economist at NatWest Markets, says the Fed itself may be split over the path to take on interest rates.

With other central banks cutting rates and considering other forms of stimulus, Bethune said the Fed needs to be concerned that comparatively high USA rates could cause the dollar's value to rise and thereby hurt American exporters.

Most fund managers and economists expect global policy stimulus to prevent the world from tipping into recession.

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