Rand firms on weaker dollar after Fed chair speech

Rand firms on weaker dollar after Fed chair speech

European shares inched higher early on Friday, with all eyes on a speech by Federal Reserve Chief Jerome Powell for confirmation the US central bank is still on course to deliver another cut in interest rates next month.

Not hearing the message he wanted, Trump tweeted Friday: "As usual, the Fed did NOTHING! We have a very strong dollar and a very weak Fed", Trump tweeted after Powell's comments.

The U.S. president fumed about the Fed doing "NOTHING" in a series of tweets and asked who is "our bigger enemy" between Powell and China's President Xi Jinping.

Fellow Fed policymakers, even those who supported July's rate cut, are signaling reluctance to do more, with Philadelphia Fed chief Patrick Harker calling for a wait-and-see approach and Dallas Fed chief Robert Kaplan saying he is "open minded" but would "like to avoid having to take further action".

President Trump on Friday slammed the Federal Reserve leader as an "enemy" and unleashed a flurry of tweets attacking China after Beijing announced retaliatory tariffs on USA products.


China said on Friday it would impose retaliatory tariffs against about $75 billion worth of United States goods, putting as much as an extra 10% on top of existing rates in the dispute between the world's top two economies. Powell on Friday made clear that commitment is still in place in a speech he gave at an annual Fed retreat at a Jackson Hole valley resort set against the Grand Teton mountains.

Can the central bank buffer inevitable financial excess?

Powell has said that the White House criticism has had no effect on the Fed's deliberations over interest rate policy.

But amid fears of an economic recession, Trump has repeatedly lashed out at the Fed, blaming policymakers for raising rates too high, too quickly, while urging them to lower rates.

Even in this "challenging era", Powell said, the USA economy is in a "favorable place", which he partly attributed to the Fed's decision to cut rates in July for the first time since the financial crisis of 2008.


He said that he believes the U.S. economy will likely remain stable, but that Trump's trade policies had left it vulnerable.

It was the first rate cut in about 10-and-a-half years.

George said she saw some areas of strength, including very low unemployment and inflation now closer to the Fed's target level.

The stock market dropped more than 400 points after Trump's response.

Indeed, data reported as Powell was speaking on Friday showed further deterioration in the US housing market, on the heels of figures earlier in the week showing weakness in the manufacturing sector. Earlier in the week, he told reporters, "If the Fed would do its job, you would see a burst of growth like you have never seen before".


Related Articles

  • Emotional Angelina Jolie drops off son Maddox, 18, at college

    Emotional Angelina Jolie drops off son Maddox, 18, at college

    Maddox's siblings Pax, 15, Zahara, 14, Shiloh, 13, and 11-year-old twins Knox and Vivienne weren't with him to say their goodbyes. A source previously said that Maddox never felt like he's Pitt's son because they never had a close relationship with each other.
    Federal Reserve Under Pressure as Interest Rate Cuts

    Federal Reserve Under Pressure as Interest Rate Cuts

    While Fed board governors are permanent voters, only five of the 12 regional reserve bank presidents have a vote at each meeting. Trump said the USA economy "is the strongest in the world, by far nothing even close and a lot of good things are happening".
    SONY Edges MARVEL Out of Future SPIDER-MAN Movies

    SONY Edges MARVEL Out of Future SPIDER-MAN Movies

    According to the trade, Disney's leadership and Sony Pictures have been engaged in an ongoing dispute for several months. Additionally, Marvel Studios would not receive a cut of the box office for any of Sony's films that feature Spider-Man.
  • Trump Alienates Danes, US Jewish Voters on the Same Day

    Trump Alienates Danes, US Jewish Voters on the Same Day

    In Trump's mind, Shalev observes, Jews who vote against his party must be "ungrateful", given all that he has done for Israel. Brooks said he believes the Democratic Party eventually "will become very strongly anti-Jewish and anti-Israel".
    Jill Biden's Attempt to Campaign For Her Husband Backfires

    Jill Biden's Attempt to Campaign For Her Husband Backfires

    Biden's unvarnished emphasis on pragmatism reflected that bet, even as many other candidates believe that the way to defeat Mr. Trump is by energizing young voters, particularly younger voters of color, through boldly progressive policy proposals.
    Indian authorities begin easing clampdown in Kashmir

    Indian authorities begin easing clampdown in Kashmir

    Our concern is with the forceful change in Kashmir's demographics and the violation of the rights of the people of Kashmir. Asif Ghafoor said the country's armed forces were fully prepared to respond to any Indian aggression.
  • Barr Demotes Head Of Federal Prison System

    Barr Demotes Head Of Federal Prison System

    James Island both in the Virgin Islands, US$22,498,600 and US$63,874,223 respectively. The attorney general also named Thomas Kane as the deputy director.
    US  moves to detain asylum seekers indefinitely in 'campus-like' settings

    US moves to detain asylum seekers indefinitely in 'campus-like' settings

    In the wake of the outcry, the Trump administration tried a year ago to supercede Flores and detain migrants indefinitely. But immigrant advocates decried it, and said prolonged detention would traumatise immigrant children.
    Antonio Brown still not practicing because of helmet issue

    Antonio Brown still not practicing because of helmet issue

    Green Bay defeated the Bills 35-3 in Toronto on August 16, 1997 and beat Kansas City 27-24 in overtime in Tokyo on August 2, 1998. Meanwhile, new Oakland receiver Antonio Brown is recovering from frostbitten feet he got during cryotherapy in France last month.
  • New PM urges action to improve vaccination uptake

    New PM urges action to improve vaccination uptake

    However, health leaders have been slow to act - proven by these figures from Public Health England . For several years global coverage with the first dose of measles vaccine has stalled at 85%.
    Pakistan to take occupied Kashmir case to global  forums: Firdous

    Pakistan to take occupied Kashmir case to global forums: Firdous

    He has stated that he would bring up the Kashmir issue when he meets Prime Minister Narendra Modi at the G7 summit later this week.
    Steve Smith to miss third Ashes Test

    Steve Smith to miss third Ashes Test

    Steve Smith became the first player to be substituted for concussion. "Hopefully he's right and able to play in the next match". He was replaced by Marnus Labuschagne after Australia's request was approved by match referee Ranjan Madugalle.