Thus NOT following the wishes of one Donald Trump….
And thus showing its independence as it’s supposed to….
They know that despite the rosey picture Trump wants?
The American economy IS growing soft and Trump’s actions could in fact make things worst…..
Federal Reserve Chairman Jerome Powell on Wednesday blew up market hopes that the central bank might cut interest rates, ignoring pressure from President Donald Trump and causing stocks to tumble.
Powell said the central bank believes that inflation, which has been coming in below the Fed’s 2 percent target, is being held down by “transient” factors, such as portfolio management services, lower apparel prices and airfares. That means the Fed still thinks it can sit back and have inflation move back up toward 2 percent without needing to give it an extra boost.
“We don’t see a strong case for moving [rates] in either direction,” he said in a press conference after the Fed’s meetings this week in which the central bank left rates unchanged. The economy is experiencing roughly 1.5 percent inflation by a couple of different measures.
The Dow Jones Industrial Average fell 163 points.
Powell’s comments are in contrast to calls by Trump and White House economic adviser Larry Kudlow to slash rates, even as the economy grew a better-than-expected 3.2 percent in the first three months of the year….