Fed prods Americans to purchase more on credit

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The Federal Reserve's patient approach to monetary policy is no guarantee that it will leave interest rates where they are for the rest of the year, the president of the Atlanta Federal Reserve Bank, Raphael Bostic, said on Friday.

Mr Moore's selection is just the latest step in Mr Trump's effort to exert control over the U.S. central bank, which was designed by Congress to be independent from short-term political pressure. There are now two vacancies on the Fed board.

Moore has frequently praised the administration on television and co-authored the 2018 book "Trumponomics" with Art Laffer, who pioneered the Republican doctrine that lower tax rates would accelerate economic growth in ways that could minimize debt.

Trump repeatedly claimed that the Republicans' $1.5 trillion tax cut primarily aimed at corporations and the rich would pay for itself with annual economic growth above 3 percent. Moore, formerly chief economist for the conservative Heritage Foundation, has also been critical of the policies of Chairman Jerome Powell.

Under the threat of constant second-guessing by the president, and potentially soon working with a Trump cheerleader inside the building, Fed officials may find it increasingly hard to stay focused on keeping the institution at a distance from politics.

Trump's move came a day after he again bashed the Fed in an interview, this time with the Fox Business Network, where he got asked about a Fed signal that further rate increases this year are not likely and whether that was due to his influence. He did not say how many rate hikes he now thinks are appropriate. "One thing, I was right".

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Now, Bostic is emphasizing he hasn't ruled out possible rate hikes later in the year, citing inflation or labor market decline as two data points that could trigger rises.

"I don't want to be a disruptor", Mr Moore said. And they tightened, I mean, they did $50 billion a month. "I said, 'What are we doing here?'"

Moore joined CNN as a contributor in early 2017.

Followed by the reveal of latest Fed policy, there had been signs of reverting back interest rate lower for loans used to purchase house and cars, eventually prodding the United States citizens to purchase more.

Kevin Hassett, Trump's top economic adviser, told the Post that the analysis was wrong because the administration was able to achieve 3.1 percent growth over the past year.

The White House is also continuing to consider one-time presidential candidate and pizza chain magnate Herman Cain for a spot, Bloomberg News reported late on Thursday, despite concerns that the accusations of sexual harassment that derailed Cain's bid for president could complicate his Senate confirmation.