Gold at 1-week high as Trump’s Fed criticism weighs on…

Gold at 1-week high as Trump’s Fed criticism weighs on…

Gold at 1-week high as Trump’s Fed criticism weighs on…

Kitco reports that gold prices are posting good gains during the afternoon trading session in the usa on Monday, Aug. 20. Treasury Secretary Steven Mnuchin recently told reporters that he had personally spoken to Trump about the central bank and that the president respects the independence of the Federal Reserve.

Trump is with his own appointee, Chairman Jerome Powell, for raising interest rates and said the USA central bank should do more to help him to boost the economy. Wednesday's release will nearly certainly make no mention of recent commentary from President Trump about the Fed's recent interest rate increases.

Trump since July has repeatedly criticised the Fed, an independent body that is not controlled by Congress or the president.

While the minutes could pass with little impact due to the clear and transparent nature of the Fed interest rate tightening cycle right now, traders will still pour over the release and look for any clues that the pace could pick up further or could be persuaded to slow down.

Since Trump took office, the Fed has raised rates five times, including twice this year under Powell. The president publicly questioned the interest-rate hikes in July.

Stocks are at an all-time high.

Two months before he was elected President of the United States in September 2016, Donald Trump said Fed chair Janet Yellen should be "ashamed of herself" for keeping interest rates low and creating a "false stock market" saying that the central bank's policies were hurting savers and pension plans.


"The Fed could be forced to act if incoming economic data showed the US economy was hurting", said Sung Won Sohn, chief economist at SS Economics, an economic consulting firm. "I'm not thrilled with his raising of interest rates, no, I'm not thrilled", he said.

"The overtone of Trump trying to persuade the Fed to stop aggressively tightening is probably one thing the markets focused on, said Tom di Galoma, a managing director at Seaport Global Holdings in NY".

The S&P 500 Index rose 0.2 percent to 2,862.96 as of 4 p.m. Unemployment, at 3.9 percent, is near a 50-year low.

Gold prices steadied at their highest in a week on Wednesday, as the dollar eased ahead of minutes from the U.S. Federal Reserve's August policy meeting and trade talks between Chinese and U.S. officials.

The dollar index, which measures the greenback against a basket of currencies, was down about 0.1 per cent on Wednesday, after touching its lowest since Aug 9 at 95.08, in the previous session.

Presidential meddling in monetary policy has a troubling history, most notably President Richard Nixon's insistence that the Fed keep interest rates low ahead of the 1972 election. Some wonder whether Powell would try to perform the same magic this time if the global picture seemed to imperil the US expansion, now the second-longest on record. Meanwhile, President Trump appears to be putting his thumb on the scales of this delicate balancing act, if not risking tipping over the scales entirely.

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