Despite Trump criticism, Fed sees need for more rate hikes

The New York Stock Exchange building. A selloff in US markets on Wednesday 10 sparked a round of global selling

"It's independent, so I don't speak to [Federal Reserve chair Jerome Powell] but I'm not happy with what he's doing", he added.

The broadly united front could bolster expectations the central bank will raise rates a fourth time this year in December, but the minutes also show the committee remains split on how much further to raise rates next year.

In February, Trump tapped Powell, then a member of the Fed's board, to become chairman after he had decided not to offer Yellen a second four-year term.

Last week, Trump called the Fed "loco" and "too aggressive" for its commitment to cooling the economy, and blamed the central bank for the more than 1,000-point drop in the Dow Jones industrial average last week.

"The modernized version of the Taylor (1999) rule recommends a relatively subdued policy rate path over the forecast horizon - similar to the St. Louis Fed's recommended path, " Bullard said.

Mike Loewengart, vice president of investment strategy at E*Trade, said: "For now, the Fed has made it clear that they are focused on their agenda despite rising presidential pressure on their rate decisions".

This would move U.S. interest rates slightly above what policymakers say is "neutral" - that is, neither slowing nor speeding the economy - but some participants said the Fed may need to go even further than that.

"Almost all participants saw little change in their assessment of the economic outlook, although a few of them judged that recent data pointed to a pace of economic activity that was stronger than they expected earlier in the year", according to the minutes.

Inflation rates hit a six-year high in July.

Furthermore, "some" at the meeting said risks grew as the U.S. economy increasingly outpaced its rivals" more sluggish growth "because of the potential for further strengthening of the dollar'. "My biggest threat is the Fed", he said.

Some investors say that, after years of easy money, pockets of risk have built up throughout the global economy - raising the chances that a bubble could burst or banks could see significant defaults on debt as borrowing costs begin to increase.

Companies facing higher materials costs told the Fed they had an 'increased ability to raise the prices of their products, ' according to the minutes.

USA stock prices recovered some earlier losses but were still down for the day following the minutes.



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