The top Federal Reserve official, Esther George said in a statement that she favors two more rate hike this year, despite the complaints from President Trump that these hikes are continuing to slow the US economy and creating risks for the economy.
Ester said that President Trump comment wont affects the stance of the Federal decision taken by the Fed officials, as they are also working for the same motive of making the US economy stronger and stable, and two more rises in the rates could be an appropriate measure.
Ester said that Congress established the independence of Central Bank to put a firewall in place so that Central Bank could carry out its decision making in an independent way and not get influenced by any political interferences. It is also said in a research report of an Oxford Economics that, independence to the Central Banking is often taken for granted in the advance economies; however, the report suggests that independence to the Central bank is a must and should remain the guiding principle for the Monetary Policy.
Analysts also suggest that the speech which is going to be delivered by the Fed Chair Jerome Powell will not move the market expectation to a substantial level as he is likely to speak about the long-terms goals and issues related to the monetary policy.
This decision from the Feds came after the event of President Trump asked for a support from them in not increasing the interest rates to the third or fourth time either. As this would seriously hamper the lending rates and the business doing motive of the startup would be hampered as borrowing money to do business would be charged high. After from this, this increase would affect the investment on the business from the foreign countries, as they would think twice before investing in the land of US or possibly go to another country for business, which is a loss of opportunity to the US.
Henry Toffoli was born and raised in Mobile. Henry has worked as a journalist for nearly a decade having contributed to several large publications including the Tuscaloosa News in the Times-Journal. As a journalist for Alabama Post Gazette, Henry covers national and international developments.