The Federal Reserve has ignored all calls from Trump to halt interest rate hikes. The Washington Examiner reports:
Federal Reserve officials voted Wednesday to raise the central bank’s interest rate target, the fourth such rate increase of the year, but also signaled that they will slow the pace of rate hikes in 2019.
The central bank also lowered initial estimates for economic growth in 2018, and tempered its outlook for U.S. economic growth in 2019.
“Over the past year the economy has been growing at a strong pace, the unemployment rate has been near record lows, and inflation has been low and stable,” Federal Reserve chairman Jerome Powell said at a press conference. “All of those things remain true today.”
Nevertheless, he said, “some cross-currents have emerged.”
The stock market is already taking a dive after this announcement, but it remains to be seen if fixed-income securities and savings interest rates will rise at the same time.