Businesses hit pause on spending amid trade uncertainty: Fed minutes

Federal Reserve expects to keep raising interest rates and is watching trade tensions minutes show

Federal Reserve expects to keep raising interest rates and is watching trade tensions minutes show

The Federal Reserve Building stands in Washington April 3, 2012.

Federal Reserve officials last month discussed the impact of further hikes in interest rates, saying that by next year they could be at levels that might begin to slow economic growth.

The minutes covered the discussions at the Fed's June 12-13 meeting in which the central bank boosted its key rate for a second time this year to a new range of 1.75 percent to 2 percent.

In minutes of their June meeting released on Thursday, central bankers said "uncertainty and risks associated with trade policy had intensified, adding they "were concerned that such uncertainty and risks eventually could have negative effects on business sentiment and investment spending".

The Federal Reserve's business contacts echoed the unease and expressed plans to scale down their investments.

The current stance of the Fed's monetary policy reflects its confidence in the strength of the USA economy and its belief that inflation is on course to rise above 2% on a sustained basis.

Modric concerned for Croatia in semi-final
In what was truly a thriller of a contest, the regulation time between the two teams ended 1-1, while the extra time finished 2-2. Croatia defender Dejan Lovren said, who plays in England for Liverpool, said his side's status as underdogs doesn't bother him.

The Trump administration has slapped tariffs on aluminum and steel products and threatened levies on more products from major partners including Mexico, Canada, Europe and China, on whom tariffs on $34 billion of goods are scheduled to go into force early Friday.

Trump has staked out a tougher approach on trade in an effort to achieve his goal of dramatically shrinking America's huge trade deficits, which he has blamed for the loss of millions of USA factory jobs.

Despite the warnings, the June minutes noted a general strengthening of the United States economy and at its meeting of June 12-13, Fed officials lifted USA interest rates by a quarter point, taking the rate into the 1-75 to 2 percent range following what is the second increase this year.

Staffers who presented the new gauge, "noted that this measure may be less affected by numerous factors that have contributed to the flattening of the yield curve, such as depressed term premiums at longer horizons. Several participants cautioned that yield curve movements should be interpreted within the broader context of financial conditions and the outlook, and would be only one among many considerations in forming an assessment of appropriate policy".

The document released on Thursday did not indicate whether policymakers took either the yield curve or the information from the staff presentation as pointing toward an impending recession.

Recommended News

  • Flying Fox leads Irish Open

    Flying Fox leads Irish Open

    A strong performance at the Irish Open could qualify Fox for the third major of the year, the British Open at Carnoustie. So there's no excuse about not being prepared or not, and I've learned that as I went along.
    European Union  chief observer: Zimbabwe election a 'critical test

    European Union chief observer: Zimbabwe election a 'critical test

    But Chamisa and his MDC party face an uphill battle to win the all-powerful presidency. He said there was need for me to connect with the modern world and talk to people.
    Yankees Interested In Mike Moustakas As First Baseman

    Yankees Interested In Mike Moustakas As First Baseman

    Louis Cardinals and Philadelphia Phillies, are interested in Moustakas but would keep him at his natural position. Financially, adding Moustakas while remaining financially flexible is very feasible for NY .
  • Harry Maguire heads England to World Cup semi-final

    Harry Maguire heads England to World Cup semi-final

    England trained in Repino on Friday morning before flying to Samara in preparation for their quarter-final meeting with Sweden . After making over 100 appearances for the Blades, he would move to Hull City and since then he has signed for Leicester City.
    United States  tariffs on Chinese imports take effect

    United States tariffs on Chinese imports take effect

    However, if and when the war escalates, tariffs would go up on the daily necessities Americans have got used to buying cheap. He added the USA is ready to target an additional $200 billion, and then $300 billion more should Beijing retaliate.

    Wimbledon 2018: Alexander Zverev survives scare to reach third round

    Zverev will play former world No 10 Ernests Gulbis next, and then if he wins, either Kei Nishikori or Nick Kyrgios . Describing Gulbis as a 29-year-old ranked 138 in the world, could conjure the image of a journeyman scraping by.
  • UKIP 'Saves the Internet': EU's Attack on Memes Voted Down, Delayed

    UKIP 'Saves the Internet': EU's Attack on Memes Voted Down, Delayed

    Earlier this week, supporter Paul McCartney penned a letter to MEPs, saying "Music and culture matter". Every political group in the Parliament was divided, with MEPs voting in favour and against the bill.
    How much time has Neymar wasted at World Cup 2018?

    How much time has Neymar wasted at World Cup 2018?

    According to Swiss broadcaster RTS, Neymar's overacting on the ground has resulted in loss of nearly 14 minutes of play time. In the most recent match vs Mexico, Neymar was heavily criticized for overreacting to his foot being stepped on.

    Canadian Milos Raonic's Wimbledon match suspended because of darkness

    Pliskova, the seventh seed, came back from a set and a break down on No.1 court to win 3-6 7-6 (7-3) 6-1. The Serb next faces home hope Kyle Edmund, a 6-4 7-6 (7-0) 6-2 victor over American Bradley Klahn.
  • Father who shot teenagers in Sydney found dead

    Father who shot teenagers in Sydney found dead

    Mr McFadden said the mother, who arrived at the house shortly after the shooting, was treated by paramedics for severe shock. Det Supt Brett McFadden said two " powerful " handguns registered in Edwards' name were discovered at the Normanhurst house.
    Original North American Dogs Descended From Siberian Populations

    Original North American Dogs Descended From Siberian Populations

    All of these tumours are clones - genetically highly similar to one another but genetically distinct from their hound hosts. Due to their isolation, the immune systems of pre-contact dogs may have been unprepared for the arrival of new pathogens.
    England unchanged to face Sweden in quarter-final

    England unchanged to face Sweden in quarter-final

    The first of those three games saw the Three Lions take on Sweden in Samara in the World Cup quarter-final on Saturday afternoon. Speaking after the game, captain Harry Kane said: "I thought we were fantastic today, Sweden made it very hard ".

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.