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Washington, DC, December 26, 2018 (AFP) – Stock markets tumbled in December, following controversial statements by US President Donald Trump and growing concerns about the future of the global economy.
Trump sometimes criticized the Federal Reserve (Fed) for its policy of increasing interest rates. Prior to last week's US Central Bank meeting, Trump had been adamant that the company should no longer raise its interest rates.
This type of comment breaks with the tradition of its predecessors, which was to avoid commenting on the Fed so as not to compromise the independence of the Fed.
As expected, the Fed chose to raise interest rates again last week, and gave subtle signals that future peaks would be further apart.
For some badysts, the
Following the decision of the Fed, some US media said that Trump was considering overthrowing the president of the entity Jerome Powell.
Treasury Secretary Steven Mnuchin and other government officials have denied that Powell's position is in danger. Trump again fired on the Fed, declaring Monday
Kevin Hbadett, economic advisor to the White House, said "100% sure" The Fed itself is a source of concern for its repetitive increases in interest rates. "
The Fed itself is a source of concern for its repetitive increases in interest rates.These increases automatically extend interest on mortgages, as well as loans for cars and other property.
The Fed says it is raising interest rates to avoid overheating the economy.However, this logic has remained compromised because last week's increase has been accompanied by ## 147 ########################################## 39, a downward revision of its growth and inflation forecasts.
The Fed has "exacerbated" the situation, said Quincy Krosby, stock market strategist at Prudential. "The market says that [la Fed] n & rsquo; Not organize a soft landing, but a forced landing. "In other words, this could be a policy mistake."
Mysterious Comments
Mnuchin attempted to appease the Investor concern in org conducting a teleconference with the leaders of the big banks claiming that he had sufficient liquidity and believed that the US economy would continue to maintain a steady pace of growth.
the comments were criticized by market badysts, which raised new doubts, while the government was partially paralyzed by the lack of agreement to finance a wall on the border with Trump a defended Tuesday Mnoutchine, which he described as "very talented, very intelligent".
More modest global growth
Fed talks unfold exactly when the global economy slows growth.
In October, the IMF lowered its global growth forecast in 2018 and 2019 to 3.7% for both years.
In late November, IMF Managing Director Christine Lagarde said the forecast could be revised again in January.
The Fund also warned for months. It can be expected that the economic benefits of a decline in US tax in the United States have decreased economic benefits.
American companies repatriate less money. According to Oxford Economics, repatriated amounts increased from $ 294.8 billion in the first quarter to $ 183.7 billion in the second quarter and $ 92.7 billion in the third quarter.
The Trade War
Investors have also been concerned about the consequences of the trade war between the United States and China, the world's two largest economic powers, which are also very interdependent.
The Chinese economy has already reduced its growth. When the US began to show signs of slowing down, investors worried that the global economy would be damaged.
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