Trump escalates his attack on Fed: ‘My biggest threat’

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The US Federal Reserve has signalled there will be another rise in interest rates this year, despite opposition from the White House and growing concerns about the impact on emerging market economies.

During the meeting, which was held on September 25-26 policymakers said they believed further rates rises were required to stop inflation from shooting the 2pc inflation target and to reduce the risk "posed by significant financial imbalances". "And it's too independent, so I don't speak to [Trump-appointed Fed Chair Jerome Powell], but I'm not happy with what he's doing, because it's going too fast, because - you looked at the last inflation numbers, they're very low".

Their assessment is likely to anger President Trump, who over the past week has repeatedly attacked the Fed for raising rates last month, saying that it is acting too quickly to constrain a booming American economy.

Last week, Trump criticized the US central bank twice, saying it was raising interest rates so swiftly that it threatened the country's economic health. "I put (Powell) there".

The president told Fox Business's Trish Regan that the greatest threat to his presidency is one that would destroy economic growth.

The Fed has raised interest rates three times this year as it seeks to prevent a vibrant economy from overheating.

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Though the minutes did not refer to any of Trump's criticism, its message of further rate increases suggests that policymakers are not fazed by it.

The Fed minutes did not include any discussion of Trump's attacks. The Fed continues to debate the precise short-term neutral rate, while its median estimate for a long-run neutral rate is 3 percent.

Under Powell, the Fed has been gradually raising rates as the economy has strengthened as a way to prevent a run-up in inflation.

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. "And maybe it's right, maybe it's wrong, but I put him there".

Despite his criticism of the Fed's policymaking, Trump's picks have been seen as representing the mainstream of economic thinking about how a central bank should manage interest rates. But the courts ruled in a case decades ago involving the Federal Trade Commission that this language has to involve more than a policy disagreement between the president and the Fed.

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