Hello. The great Fed rate debate continues. Asian markets are following the US hike. And crypto wallets are under scrutiny. Here’s what people are talking about.
Kansas City Federal Reserve President Jeffrey Schmid has signaled he is not ready to support a U.S. interest rate cut while inflation is above target and the labor market remains healthy despite some slowdown. Schmid said the recent decline in inflation was “encouraging” and that new reports of weak price pressures would strengthen his confidence that inflation is on track to meet the central bank’s 2% target. Meanwhile, Republican candidate Donald Trump has said the president should have a say in interest rates and monetary policy, a move that would run counter to the longstanding practice of keeping the Fed independent of political actors. Trump has often expressed frustration that the executive branch does not have more influence over interest rates. On Thursday, he criticized Fed Chair Jerome Powell for being “a little too early and a little too late” in changing interest rates. And a mysterious investor who made a record bet on long-term Treasuries in June has come forward and said his recession prediction is finally coming true.
