The head of the US central bank has mounted Wall Street

The US central bank has raised its key rate three times this year, which has provoked strong criticism from Trump.

"I think the central bank is a much bigger problem than China," Trump said in an interview with The Washington Post.

Trump then questioned Powell, as he himself had named, stating that he was "not even a little satisfied" with the election of the head of the central bank.

Trump has repeatedly accused the central bank of undermining its attempt to accelerate the US economy.

"I get agreements, but I do not get support from the central bank," Trump said during the interview.

Historically low

Governor Jerome Powell did not comment on the president's attack during a speech delivered Wednesday before the New York Economic Club, but did not rule out further rate hikes. 39; interest.

"The interest rate is still historically low," Powell said.

The governor pointed out that there was no decision to raise the interest rate, but it was only a matter of time.

The bank's key rate is now 2.25% and analysts expect a further rise in interest rates in December.

risk

Interest rate hikes will occur over time so as not to dampen growth, said Powell, who also warned against maintaining artificial interest rates.

"Maintaining interest rates too low for a long time involves other risks, including rising inflation," he said.

"Our monetary policy decisions will, as always, help keep the economy on track," Powell said.

Major US indices rose on Wednesday afternoon after Fed Chairman Jerome Powell said in a speech that interest rates were just below a neutral level, writes CNBC.

This means that interest rates are close to the level at which they neither increase nor slow down the rate of growth.

Dow Jones is just after kl. 19.30 up 2.1%, while the S & P 500 is up 1.8%. Nasdaq is up 2.2%.

Healthy economy

The governor continued to argue in the stock market and financial system speech and said that there was currently much more sobriety than before the 2008 financial crisis.

Powell believes that the US economy is healthy and shows that growth is above 3% this year. In the United States, the unemployment rate is now 3.7%, its lowest level in 50 years, and the rate of inflation is 2%, which is in line with the target of 30%. inflation of the central bank.

However, there are many dangers among them, including the slowdown in global economic growth, says Powell. Many economists are concerned that President Donald Trump's trade war with China and other countries is contributing to it.(Conditions)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our business using a link directly to our pages. The copy or any other form of use of all or part of the content may only be done by written authorization or as permitted by law. For other terms please see here.