In the midst of the ailing US currency, Federal Reserve members are now starting to see signs of uncertainty in a considerable manner regarding the effects of a potential fiscal stimulus led by the Trump administration.
The statement which was announced through the minutes of a release last Wednesday also stated that they still expect more monetary policy tightening for this year and has not received enough reasons to cut down their original plan.
Despite keeping their stand firm regarding two more interest rate hikes, officials from the Federal Reserve did note and emphasize a weakness in the US economy’s current growth rate based on “hard” economic data and on actual performance relative to soft data. These were enough to signal and confirm rising concerns on the failing economy that might push through until May. The federal reserve then may decide to change their forecasts prior to the next fed meeting on June 14.
While Chicago Federal Reserve President Charles Evans is still on the positive side of supporting two more interest rate hikes for the year, St Louis Federal Reserve President James Bullard has reportedly decided to not support an additional rate hike.
On the other hand, Boston Federal Reserve President Eric Rosengren announced that he will support four more increases. William Dudley from the New York Federal Reserve stated that he stands on the original three rate hikes for the year and that reducing the Fed’s balance sheet asset size could be a replacement for a rate exchange.
Minutes from the meeting
Other officials from the federal reserve also
Trump Plans Lacking Stimulus
Trump who promised a sustained 4% annual GDP growth has downgraded it to 3% recently, significant cut taxes, $1 trillion infrastructure investments, and focus on expanding employment and labor in the country is now being doubted by the Fed due to the lack of stimulus from his administration.
The minutes revealed that the fed saw downside risks to the country’s economic growth and other future changes in the country’s existing policies.
Regarding Trump’s current plan of repealing the Affordable Care Act, Fed Chair Janet Yellen has personally noted on the matter including the more restrictive immigration policies.
With the declining US Dollar due to the mixed US data in the past couple of weeks, the greenback’s now set to rise if Trump and Chinese President Xi Jinping reaches an agreement regarding the relationship
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