I Wanna Take You Higher... ( Archived) (5)

Trump claims since being in office as president the economy has GREATLY grown and improved, well, the Federal Reserve is GREATLY raising the interest rates because of Trumps claims as to how fast the economy has grown with more jobs, since he's been in office, etc. the alternative facts about all these jobs Trump has supposedly created since taking office has given cause for the interest rates to rise.

Federal Reserve said it will continue to increase the interest rates according to the growth of the economy and job increase. I suppose it will not be long before we'll be back to having 12% interest rates hitting us in the face and listening to all of Trump's followers complaining the rates are too high and gas in back to almost $5.00 plus a gallon.. yes, its called: MAKING AMERICA GREAT AGAIN!

It’s based on some wrong views about the economy, particularly that we’re closer to full employment than I think we are. But a quarter-point doesn’t have a huge impact on the economy.
Dean Baker, co-director, Center for Economic and Policy Research

Economic observers now await the White House’s reaction to the Fed’s announcement. During the 2016 presidential campaign, Trump was critical of the Fed for failing to raise interest rates ahead of the November election, accusing Yellen of artificially buoying the economy to benefit the incumbent Democrats.

But as Trump prepares a major package of tax cuts and a large infrastructure plan ? which even some of his critics believe could boost the economy further ? he could soon be on a collision course with the Fed for doing exactly what he claimed it should have done under President Barack Obama: raise interest rates.

Any of Trump’s policies that create more jobs would likely prompt the Fed to increase the funds rate more rapidly. The contractionary impact of those hikes could offset any expansionary effect of Trump’s agenda.

Yellen insisted on Wednesday that Fed officials were not basing their decisions to raise rates around the expected impact of Trump’s policies. She also acknowledged meeting Trump briefly, and speaking with Treasury Secretary Steve Mnuchin on more than one occasion.

Try as Yellen might to avoid it, however, she had to field questions about a potential showdown with Trump. The Fed’s policymakers predict that economic growth will reach 2.1 percent in 2018 before leveling off at 1.8 percent in 2020 and beyond.

Trump has promised that his policies will generate 4 percent economic growth, and claims they could even spur 5 percent growth rates.

When asked about the disparate estimates, Yellen denied that Fed officials’ more conservative growth projection reflected a possible “point of conflict” with the president, so long as inflation remains within the Fed’s target range, that is.

“I don’t believe it is a point of conflict. We would certainly welcome stronger economic growth in the context of price stability,” Yellen said.

As with many issues, Trump’s stance on the Fed has not been entirely consistent, and it’s possible he could embrace his old ideas if circumstances warrant it. Before Trump began arguing that Yellen was using low rates to inflate an economic bubble for political reasons, he had expressed support for her policies, claiming the low rates were good for U.S. exports.

Should the Fed respond to Trump with higher rates, and should Trump challenge the Federal Reserve for prioritizing concerns about inflation over allowing job growth to proceed unencumbered, he might find unlikely allies in progressive economists who have long taken issue with the Fed’s priorities. But that’s far from a sure thing.

“At this point, I won’t place bets on that. I guess we’ll find out soon enough,” Baker said.


By Daniel Marans

http://www.huffingtonpost.com/entry/federal-reserve-donald-trump-interest-rate-hike_us_58c96eb3e4b0cb7d28ce1f03?

ya sniffin the ink off the paper again sista?

i want to see yellins .25 interest hike on my bank statement...

its on da-way!...but for you I'll go 45% how 'bout dat?