Tags: fed | bullard | donald trump | action

Fed's Bullard to Trump, GOP: Enough Promises, Let's See Action

By    |   Thursday, 12 Jan 2017 11:20 AM

A key Federal Reserve official is humbly offering some advice to President-elect Donald Trump and the Republican-controlled Congress: We have heard enough of the pro-growth economic rhetoric, the financial markets now want to see action and results.

St. Louis Federal Reserve President James Bullard told CNBC that he doesn’t expect Trump's agenda to have much impact this year. He expects to see consequences of Trump’s actions in 2018-2019.

The Fed expects to raise interest rates three times this year, after policymakers increased the cost of borrowing money by a quarter-point in December. It was only the second hike in the past decade.

The current range for short-term rates stands at 0.5 percent to 0.75 percent.

Bullard, who is no longer a voting member on the Fed's policymaking committee, said he still thinks economic conditions will justify only one interest rate this year.

He said the central bank’s rate-hike philosophy is not going to change from a “snapping fingers.”

Bullard said that increasing rates again because of higher economic growth would be good news, CNBC.com explained.

There's an expectation Trump may aim to shake up the central bank with a heavier emphasis on business experience among policymakers, to which Bullard said: "It's great to have a mix of people involved in the Fed."

"You don't want everyone to be a clone. You want a variety of backgrounds. I think we have that now. If we could get more of that, I think that would probably be a strength for the organization," he added.

To be sure, other respected economic gurus have warned Trump that what is needed now is a little less conversation and a little more action.

Republican hesitation on immediately enacting sweeping tax cuts has stalled the recent stock-market rally, preventing the Dow Jones Industrial Average from cracking the 20,000 milestone, Forbes Media CEO Steve Forbes tells Newsmax TV. 

The Dow industrials came within a whisker of the 20,000 milestone, but has since pulled back.

“We're almost there and the reason we haven't gone over is the question now is rising up ‘How hard are the Republicans going to push tax reform?” Forbes told "Newsmax Prime" host J.D. Hayworth on Wednesday.

“The reason the market went up after the election markets always try to anticipate the future,” said Forbes, author of "Reviving America."

"Well now in recent weeks Republicans are starting to make noises. ‘Maybe we shouldn't go for a big tax cut. Maybe we should wait until August. Maybe we should just focus only on healthcare,’” Forbes told Newsmax TV of Republican tax-strategy speculation.

“No. You got to do it all. And so this is where Trump will start to set the tone on Jan. 20 with executive orders undoing some of these crazy regulations from EPA and others, given the green light," Forbes explained.

“That'll set the stage for a much higher stock market.”

© 2017 Newsmax Finance. All rights reserved.

 
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A key Federal Reserve official is humbly offering some advice to President-elect Donald Trump and the Republican-controlled Congress: We have heard enough of the pro-growth economic rhetoric, the financial markets now want to see action and results.
fed, bullard, donald trump, action
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2017-20-12
Thursday, 12 Jan 2017 11:20 AM
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