The Federal Reserve really messed things up yesterday by hiking interest rates by a quarter point.
According to CNBC:
The Federal Reserve on Wednesday raised its benchmark interest rate a quarter-point but lowered its projections for future hikes.
As markets had expected, the central bank took the target range for its benchmark funds rate to 2.25 percent to 2.5 percent. The move marked the fourth increase this year and the ninth since it began normalizing rates in December 2015. It came despite President Donald Trump’s tweets against rate hikes. On Monday, he said “it is incredible” that “the Fed is even considering yet another interest rate hike.”
I agree with Trump's position. The media has been saying that the economy has been "softening", but I have my doubts on that. I think the Obama holdovers in the Federal Reserve are trying to weaken the economy so that Trump will be blamed. Raising interest rates at this point is ridiculous.
Unfortunately, the Federal Reserve is independent of both the President and congress. Neither can rein them in, except by passing new laws and that's a long process.
To read more, go here.
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