Bullard Warns of a U.S. Recession If Fed Keeps Raising Rates

Is it time to invest in gold

Powell reiterated the views of other policymakers that the Fed would be patient about interest rate hikes.

"If the economy slowed down more than we thought, or the inflation outlook deteriorated more than I'm suggesting here, there might be grounds for a little bit lower (federal funds) rate in that scenario", Bullard said. "We're waiting and watching". The Fed's communications - and a Bloomberg News report that President Donald Trump had discussed firing Powell - helping bring on the worst December for stocks since the Great Depression. However, many economists believe the Fed may end up raising rates only once in 2019, and that solo rate hike may not occur until the middle of the year.

Speaking to an audience in Washington, D.C, Powell delivered the same reassuring message that bolstered markets last Friday.

After four rate hikes a year ago, the Fed would be "bordering on going too far and possibly tipping the economy into recession" if rates go higher, Bullard said, adding that he would be willing to cut interest rates if needed. He said the Fed's aim was to return the balance sheet to a "more normal level" but didn't specify what that level will be.

Fed Chairman Jerome Powell last week opened the door to a pause in rate increases, pledging to be patient with any future rate hikes as officials take their cues from the economy's performance.

Chocolates, caramels sold nationwide may be contaminated with Hepatitis A
The FDA says the transmission of hepatitis A through the candy is low. "These agencies have cleared us to continue operation". Consumers and retailers have been advised to throw away and not to eat the affected sweets purchased after November 14.

In his remarks before the Economic Club of Washington, Powell described the economy as strong at the end of a year ago, with the lowest unemployment levels in a half-century and solid gains in wages. The partial government shutdown is unlikely to leave a mark on the economy in the short term, though the Fed will have a less clear picture of growth without data from the Commerce Department, which releases figures including retail sales and gross domestic product.

The S&P 500 is up over 10 percent from a 20-month low it touched around Christmas, lifted by hopes for a US-Chinese trade deal, which eased some worries over the impact of the dispute on global growth.

"We are in a place where we can be patient and flexible and see what does evolve", Powell said. Rubenstein also hosts an interview show on Bloomberg Television.

"We are very focused on our job", Powell said. Fed chairs have met with presidents in the past, he added.

The Fed raised rates for a fourth time in 2018 at its December meeting and signaled that it would raise rates another two times in 2019. "The US economy is solid". Financial markets are incorporating a variety of risks to the outlook, ranging from slowing global growth to the potential for a protracted trade war with China.

Related:

Comments

Latest news

Clinic boss quits after patient in vegetative state gives birth
A Hacienda HealthCare spokesman said the organisation was co-operating with authorities. One of them includes not allowing male employees in rooms without a female supervisor.

Brahim Diaz fulfils childhood dream with 'unforgettable' Real Madrid debut
Diaz added: " Sergio Ramos has congratulated me and told me to continue like this, and that I will have many minutes". Keylor Navas , right, will get a chance to start for Real Madrid due to Thibaut Courtois' injury.

ABC Wants The Avengers Presenting Oscars During 2019 Ceremony /Film
There had been rumours as to who might take his place, but on Wednesday night, Variety reported that for the first time since 1989, the Oscars ceremony will go ahead without a host.

Gwyneth Paltrow's ex-husband Chris Martin joined her on 'very modern honeymoon'
Speaking on U.S. talk show Live With Kelly And Ryan , Paltrow called it "a very modern honeymoon". So (it was) my new husband, his children, my children, my ex-husband, our best family friends.

Alabama wide receivers coach Josh Gattis taking over as MI offensive coordinator
He previously coached for six years under James Franklin at Vanderbilt and Penn State. Crimson Tide wide receivers shined in Gattis' lone season with the program.

The Punisher Season 2 Official Trailer
Season 2 will see the return of FBI Agent Dinah Madani ( Amber Rose Revah ) and Curtis Hoyle ( Jason R. Castle protecting a young girl ( Giorgia Whigham ) after she is nearly murdered for information.

Nokia 8.1 Plus renders show a punch-hole screen
Per the images, the Nokia 8.1 Plus will have a rear glass panel bearing the Nokia logo and the Android One branding. As per the report, the phone could be called the Nokia 8 .1 Plus, but nothing is certain at the moment.

AFC Asian Cup 2019, India vs UAE, Highlights
Scoring in Asian Cup wouldn't be something new to Sunil, as the striker has already scored four times in the championship. Ismail Al Hammadi - He has been a key member of the UAE side for over 10 years and has scored against India in 2011.

Xiaomi Redmi Note 7 gets Bluetooth certification ahead of launch
It seems like Xiaomi is holding this one back until the Chinese New Year, but we can likely expect a horsepower upgrade as well. Redmi Note 7 marks Xiaomi's departure from the metal unibody design. -A phone so cheap with 48MP camera is a big deal.

Mobile is taking on phone scammers with new Caller Verified technology
To say that spam calls are annoying would not only be redundant, but it'd also be a big understatement. Caller Verified is now available on the T-Mobile Galaxy Note 9 at no extra charge.

Vegas police want Ronaldo's DNA for alleged rape in 2009
The model's lawyer Jonathan Coad of Keystone Law said: 'I am advising her on a possible harassment claim against Mr Ronaldo'. Once there, say the court papers, he urged her into his hot tub, but she refused because she did not want to spoil her dress.

Rahaf Al-Qunun Referred To Australia For Refugee Resettlement By UNHCR
Mr AlAraibi said Australian embassy officials in Bangkok had been visiting him once a week. Alqunun's case has highlighted the cause of women's rights in Saudi Arabia.

Tim Tebow Is Engaged to Miss Universe 2017 Demi-Leigh Nel-Peters
The couple's inner circle then had dinner at a Jacksonville club, while family and friends made speeches and toasts. Looks like Tim Tebow has a new reason to get down on one knee! "Demi Leigh Nel-Peters, I love you", he said.

Donald Trump Says He Will Cancel Trip to Davos if Shutdown Continues
The president said Americans had a great story to tell on the economy, but conceded that the shutdown fight was more important. China and the United States have agreed to a 90-day pause in implementing tariffs in order to hammer out a trade deal.

Mueller Met With Trump's Campaign Pollster, a Former Manafort Associate
Former Trump campaign manager Paul Manafort departs from U.S. Akhmetov is worth $4.9 billion, according to Forbes . I didn't know anything about that", Trump replied.

Other news