Cramer Remix: It’s not a good time to be a company like United Rentals

CNBC’s Jim Cramer knew he had to explain the stark weakness in shares of United Rentals after the stock of the largest equipment rental company in the United States lost 15 percent on Thursday and hit another 52-week low Friday. “October has been a Freddy Krueger-esque nightmare for United Rentals. United Rentals is “incredibly cyclical,” meaning that its success is tied to the state of the economy. “In a potential Fed-mandated slowdown, stocks like United Rentals … become totally toxic.” And ev


CNBC’s Jim Cramer knew he had to explain the stark weakness in shares of United Rentals after the stock of the largest equipment rental company in the United States lost 15 percent on Thursday and hit another 52-week low Friday. “October has been a Freddy Krueger-esque nightmare for United Rentals. United Rentals is “incredibly cyclical,” meaning that its success is tied to the state of the economy. “In a potential Fed-mandated slowdown, stocks like United Rentals … become totally toxic.” And ev
Cramer Remix: It’s not a good time to be a company like United Rentals Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: elizabeth gurdus, vcg, getty images, peter foley, bloomberg, alex wong
Keywords: news, cnbc, companies, united, rentals, good, cramer, wall, slowdown, fed, interest, street, remix, crushed, company


Cramer Remix: It's not a good time to be a company like United Rentals

CNBC’s Jim Cramer knew he had to explain the stark weakness in shares of United Rentals after the stock of the largest equipment rental company in the United States lost 15 percent on Thursday and hit another 52-week low Friday.

“October has been a Freddy Krueger-esque nightmare for United Rentals. The darned thing is down 28 percent just since the beginning of the month,” the “Mad Money” host said.

Part of the problem? United Rentals is “incredibly cyclical,” meaning that its success is tied to the state of the economy. And the Federal Reserve’s interest rate hike agenda isn’t exactly boding well for the industrial giant, Cramer said.

“When the Fed signals that it’s going to keep raising interest rates, making new building more expensive, everybody on Wall Street knows that’s bad for business,” he said. “In a potential Fed-mandated slowdown, stocks like United Rentals … become totally toxic.”

And even though Cramer thought the company was actually doing “just fine,” he warned that the actual earnings results don’t matter to Wall Street in the same way they used to.

“Investors [are] looking for any excuse to bail because they know the numbers will be a crushed in a slowdown,” he said. “So be careful, because until the Fed relents, we could see many more cyclicals that get crushed after reporting good quarters that just happen to have a slight amount of hair on them.”


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: elizabeth gurdus, vcg, getty images, peter foley, bloomberg, alex wong
Keywords: news, cnbc, companies, united, rentals, good, cramer, wall, slowdown, fed, interest, street, remix, crushed, company


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Cramer’s memo to the Fed: Consider the jobs being wiped out by technology before hiking rates

The Federal Reserve isn’t paying enough attention to the jobs being wiped out by technological innovation, CNBC’s Jim Cramer said Friday. There is indeed a “skills mismatch” between the jobs at risk of being lost and the jobs being created, he said. “That’s why I think Fed Chief Jay Powell should try to [wait] things out. The workforce that’s being destroyed by tech is not easily slotted back into the industries that are desperate for labor. “Memo to Fed: there’s more slack in the labor market t


The Federal Reserve isn’t paying enough attention to the jobs being wiped out by technological innovation, CNBC’s Jim Cramer said Friday. There is indeed a “skills mismatch” between the jobs at risk of being lost and the jobs being created, he said. “That’s why I think Fed Chief Jay Powell should try to [wait] things out. The workforce that’s being destroyed by tech is not easily slotted back into the industries that are desperate for labor. “Memo to Fed: there’s more slack in the labor market t
Cramer’s memo to the Fed: Consider the jobs being wiped out by technology before hiking rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, workforce, consider, memo, wiped, inflation, jobs, going, need, think, fed, rate, labor, technology, rates, hiking, cramers, thats


Cramer's memo to the Fed: Consider the jobs being wiped out by technology before hiking rates

The Federal Reserve isn’t paying enough attention to the jobs being wiped out by technological innovation, CNBC’s Jim Cramer said Friday.

“Right at the moment when Silicon Valley is laying waste to white-collar jobs and many factory positions — that’s why companies love the cloud, it lets them fire people — the Fed is obsessed with the disaster that is full employment,” the “Mad Money” host said.

“Never mind that we’re not at full employment,” he added. “The labor force participation rate is below 63 percent; it was above 66 percent before the financial crisis.”

Reflecting on his recent trip to San Francisco, Cramer once again lamented that the Fed was so eager to raise interest rates, which it does in an effort to combat inflation, without considering the less obvious forces slowly transforming the U.S. employment landscape.

“The cloud isn’t shutting down factories. It’s not driving companies out of business like we’re seeing with Sears,” he said. “It’s a subtle displacement, but given time, I think it can do a great deal to keep inflation in check.”

In September, the World Economic Forum released a report predicting that by 2025, there would be more machines in the workforce than humans — but stipulated that 58 million net new jobs could still be created in the next five years to offset the shift.

A January report by the World Economic Forum and Boston Consulting Group said that almost 1 million U.S. workers would see their jobs wiped out entirely by 2026.

Cramer understood the pitfalls of letting tech-led disruption play out. There is indeed a “skills mismatch” between the jobs at risk of being lost and the jobs being created, he said.

“The people who are losing their jobs because of software from Workday or Salesforce aren’t going to pick up and start making RVs in Indiana,” he said. “They’re aren’t going to serve tables at a casual dining spot in New York City. They will not pop up in the Permian Basin.”

But if there was truly a shortage of workers, then wages would be skyrocketing to keep people in their jobs and the number of jobs being created each month — currently in the hundreds of thousands — would drop dramatically, Cramer said.

“That is not happening now,” he said. “That’s why I think Fed Chief Jay Powell should try to [wait] things out. … The workforce that’s being destroyed by tech is not easily slotted back into the industries that are desperate for labor. But if you wait long enough, I think it’s going to happen naturally and organically. People need to pay off their mortgages. They need to pay their car loans. They need to save for retirement. So they’ll ultimately accept retraining by necessity.”

The “Mad Money” added that if he was a member of the Fed, he’d “organize a field trip” to major tech companies to show central bank officials that the trend of digitization is “doing a better job of keeping inflation in check than the blunt instrument of rate hikes ever could.”

“Every minute, there’s someone in Silicon Valley who’s trying to think of a way to eliminate waste and overhead and duplication,” he said. “Memo to Fed: there’s more slack in the labor market than it seems thanks to all this technological disruption and dislocation.”

“You just need to give all these displaced people time and they’ll come back to the workforce in places where they’re most needed,” he continued. “In other words, you can stop and take a moment to reassess after that next rate hike because, given what I just traced out, prudence dictates giving these obsoleted-by-tech people … another chance at a job.”


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, workforce, consider, memo, wiped, inflation, jobs, going, need, think, fed, rate, labor, technology, rates, hiking, cramers, thats


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Rates rise for the week after Fed vows to stay the course with hikes

U.S. government debt yields were set for week-to-date gains Friday morning following comments from the Federal Reserve earlier in the week and persistent strength in employment data. Government debt rates rose throughout the week after the Fed’s latest meeting minutes showed members were confident in the current path of interest rate hikes and wary of “excesses” in financial markets. The yield on the benchmark 10-year Treasury note was higher at around 3.192 percent at 10:44 a.m. ET, while the y


U.S. government debt yields were set for week-to-date gains Friday morning following comments from the Federal Reserve earlier in the week and persistent strength in employment data. Government debt rates rose throughout the week after the Fed’s latest meeting minutes showed members were confident in the current path of interest rate hikes and wary of “excesses” in financial markets. The yield on the benchmark 10-year Treasury note was higher at around 3.192 percent at 10:44 a.m. ET, while the y
Rates rise for the week after Fed vows to stay the course with hikes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: thomas franck, spencer platt, getty images
Keywords: news, cnbc, companies, showed, officials, hikes, rate, members, yield, stay, vows, rise, restrictive, week, yields, rates, treasury, fed, course


Rates rise for the week after Fed vows to stay the course with hikes

U.S. government debt yields were set for week-to-date gains Friday morning following comments from the Federal Reserve earlier in the week and persistent strength in employment data.

Government debt rates rose throughout the week after the Fed’s latest meeting minutes showed members were confident in the current path of interest rate hikes and wary of “excesses” in financial markets.

The yield on the benchmark 10-year Treasury note was higher at around 3.192 percent at 10:44 a.m. ET, while the yield on the 30-year Treasury bond was higher at 3.374 percent. Bond yields move inversely to prices.

Minutes of the central bank’s September meeting released Wednesday showed officials discussing plans to continue with its planned rate hikes, with some members suggesting there could come a time when the committee could exceed a neutral level in favor of more restrictive policy.

Federal Open Market Committee officials would likely use restrictive rates to clamp down on inflation and to address any imbalances the Fed sees in the financial markets.


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: thomas franck, spencer platt, getty images
Keywords: news, cnbc, companies, showed, officials, hikes, rate, members, yield, stay, vows, rise, restrictive, week, yields, rates, treasury, fed, course


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Cramer: Companies with China, Fed ties ‘guilty until proven innocent’

On Thursday, Cramer noted that he was considering trimming his charitable trust’s position in 3M ahead of the quarter. Verizon: Cramer expected “another stellar quarter” from telecommunications giant Verizon. United Technologies: The “Mad Money” host is still waiting for United Technologies to finalize its deal to buy Rockwell Collins, reiterating that “the stock will indeed soar” once the deal is closed. “It’s mighty hard to trust the industrials because of China, and the Fed’s not exactly maki


On Thursday, Cramer noted that he was considering trimming his charitable trust’s position in 3M ahead of the quarter. Verizon: Cramer expected “another stellar quarter” from telecommunications giant Verizon. United Technologies: The “Mad Money” host is still waiting for United Technologies to finalize its deal to buy Rockwell Collins, reiterating that “the stock will indeed soar” once the deal is closed. “It’s mighty hard to trust the industrials because of China, and the Fed’s not exactly maki
Cramer: Companies with China, Fed ties ‘guilty until proven innocent’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, fed, united, innocent, thing, right, ties, technologies, quarter, stock, linked, companies, guilty, cramer, china, slowing, 3m, proven


Cramer: Companies with China, Fed ties 'guilty until proven innocent'

3M: Tuesday morning marks “the toughest couple of hours in earnings season,” and Cramer is most worried about the report from 3M, the manufacturer of Scotch tape and a host of other consumer, industrial and health-related goods.

On Thursday, Cramer noted that he was considering trimming his charitable trust’s position in 3M ahead of the quarter.

“Unless the company announces some significant changes to its worldwide portfolio, I figure it’s going to guide down again thanks to the weakness in autos,” he said. “It is a shame: 3M’s stock is now down more than 60 points and it still hasn’t been able to attract any substantial buyers.”

Verizon: Cramer expected “another stellar quarter” from telecommunications giant Verizon.

“It’s funny, the stock’s just a buck off its 52-week-high because the story is all domestic with tremendous strength in wireless and a good yield,” he said. “If Verizon comes in at all Monday, just go buy it, please.”

United Technologies: The “Mad Money” host is still waiting for United Technologies to finalize its deal to buy Rockwell Collins, reiterating that “the stock will indeed soar” once the deal is closed.

The only thing missing is the Chinese government’s approval, which has been “elusive” amid the United States and China’s dispute over their trade relationship, Cramer said.

“However, let me put a worrisome thought right into your head right now: Today Honeywell, which is further along in its restructuring, reported what I can only say was a monster good quarter, […] but … someone talked about tariffs on the call and then, boom, next thing you know, the stock is actually down,” Cramer said.

“It’s mighty hard to trust the industrials because of China, and the Fed’s not exactly making it easy, either,” he continued. “Since United Technologies has some housing exposure and some Chinese exposure, [I’ll] pass.”

Caterpillar: Another China-linked industrial, Caterpillar, will issue its earnings report.

“Caterpillar should be terrific, but I doubt anyone will really care,” Cramer said. “Linked to China? Slowing. Linked to construction in this country? Slowing. Linked to mining? Eh.”

McDonald’s: McDonald’s, however, could emulate Procter & Gamble’s “coiled spring” effect when the fast-food chain’s CEO, Steve Easterbrook, talks about a return to growth in the U.S. market, Cramer said.


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, fed, united, innocent, thing, right, ties, technologies, quarter, stock, linked, companies, guilty, cramer, china, slowing, 3m, proven


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Gary Cohn: President Trump shouldn’t comment on independent agencies like the Fed

President Donald Trump shouldn’t be criticizing independent federal agencies like the Federal Reserve, his former top economic advisor said Thursday. “The Fed is doing their job as an independent agency,” Cohn told CNBC’s Steve Liesman during a “Halftime Report” interview. Asked if Trump should be critiquing the Fed, Cohn replied, “I don’t think he should make comments on any independent agency.” Cohn is the former director of the National Economic Council and president and chief operating offic


President Donald Trump shouldn’t be criticizing independent federal agencies like the Federal Reserve, his former top economic advisor said Thursday. “The Fed is doing their job as an independent agency,” Cohn told CNBC’s Steve Liesman during a “Halftime Report” interview. Asked if Trump should be critiquing the Fed, Cohn replied, “I don’t think he should make comments on any independent agency.” Cohn is the former director of the National Economic Council and president and chief operating offic
Gary Cohn: President Trump shouldn’t comment on independent agencies like the Fed Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: jeff cox
Keywords: news, cnbc, companies, cohn, white, agencies, comment, president, economic, told, trump, independent, gary, trumps, shouldnt, fed, way


Gary Cohn: President Trump shouldn't comment on independent agencies like the Fed

President Donald Trump shouldn’t be criticizing independent federal agencies like the Federal Reserve, his former top economic advisor said Thursday.

As the latest former official to speak about Trump’s verbal barrage against the central bank, Gary Cohn said the president’s job is to appoint the officials who make policy and then let them do their jobs.

“The Fed is doing their job as an independent agency,” Cohn told CNBC’s Steve Liesman during a “Halftime Report” interview.

Asked if Trump should be critiquing the Fed, Cohn replied, “I don’t think he should make comments on any independent agency.”

Cohn is the former director of the National Economic Council and president and chief operating officer at Goldman Sachs. He left the administration in April after several disputes with Trump, including the president’s handling of racial unrest in Charlottesville, Virginia, and the tariffs the administration has enacted on imports from China and elsewhere.

On the Fed issue, Cohn expressed general agreement with the path that the central bank is taking. That’s in contrast to Trump’s position, which is that the Fed’s steady stream of interest rate hikes poses the biggest danger to the economic boom happening under his watch.

“If you look at what’s actually going on in the economy, when you look at the real numbers, we’re way exceeding on growth, we’re way exceeding on employment, and the Fed is basically on target,” Cohn said. “It seems to be like the Fed’s in a methodical rate-raising environment, exactly what they’re supposed to do.”

Earlier in the day, former Fed Chairman Alan Greenspan said the Fed should continue on its path regardless of White House political pressures. And former Vice Chairman Stanley Fischer warned that Trump’s hectoring of the Fed could backfire by coercing it into more aggressive policy just to prove its independence.

For his part, Cohn has had a colorful relationship with Trump.

Journalist Bob Woodward’s recent book, “Fear: Trump in the White House,” quoted Cohn calling Trump a “professional liar.” Trump recently told Fox News that he “could tell stories about [Cohn] like you wouldn’t believe.”

In his CNBC interview, Cohn stayed away from personal commentary about the president but did note that he continues to disagree with Trump on tariffs.

“Anything that raises the price of a good doesn’t make sense for our economy,” he said. “Even if they’re paying it to the government as a tariff, it’s just another tax.”

WATCH: Here’s how Trump’s tweets can cost a company billions of dollars


Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: jeff cox
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Elizabeth Warren calls on Fed to demand Wells Fargo fire CEO Tim Sloan

Sen. Elizabeth Warren on Thursday sent a letter to Federal Reserve Chairman Jerome Powell calling on the Fed to maintain its growth cap on Wells Fargo until the bank replaces CEO Tim Sloan. Read more: Here’s the heated exchange between Elizabeth Warren and Wells Fargo CEO Tim SloanThe Fed slapped the bank with the penalty in response to Wells Fargo’s 2016 fake accounts scandal, in which employees opened millions of unauthorized bank accounts. The order limits Wells Fargo from growing its balance


Sen. Elizabeth Warren on Thursday sent a letter to Federal Reserve Chairman Jerome Powell calling on the Fed to maintain its growth cap on Wells Fargo until the bank replaces CEO Tim Sloan. Read more: Here’s the heated exchange between Elizabeth Warren and Wells Fargo CEO Tim SloanThe Fed slapped the bank with the penalty in response to Wells Fargo’s 2016 fake accounts scandal, in which employees opened millions of unauthorized bank accounts. The order limits Wells Fargo from growing its balance
Elizabeth Warren calls on Fed to demand Wells Fargo fire CEO Tim Sloan Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: tucker higgins, zach gibson, bloomberg, getty images, richard drew
Keywords: news, cnbc, companies, tim, sloan, response, order, scandal, ceo, letter, fargo, bank, including, wells, warren, calls, elizabeth, fed, demand


Elizabeth Warren calls on Fed to demand Wells Fargo fire CEO Tim Sloan

Sen. Elizabeth Warren on Thursday sent a letter to Federal Reserve Chairman Jerome Powell calling on the Fed to maintain its growth cap on Wells Fargo until the bank replaces CEO Tim Sloan.

Warren, a consumer advocate who sits on the Senate Banking Committee, has long been Wells Fargo’s chief critic in Congress, repeatedly calling for top officials at the lender to be removed.

In her Thursday letter, Warren writes that Sloan is “deeply implicated in the bank’s repeated and egregious misconduct,” and urged the central bank to continue to enforce a February order that bars Wells Fargo from growing any larger until it improves its internal controls.

Read more: Here’s the heated exchange between Elizabeth Warren and Wells Fargo CEO Tim Sloan

The Fed slapped the bank with the penalty in response to Wells Fargo’s 2016 fake accounts scandal, in which employees opened millions of unauthorized bank accounts. The order limits Wells Fargo from growing its balance sheet until it takes actions that improve its governance and oversight, “including holding senior management accountable.”

In a statement, a Wells Fargo spokesperson said the company “continues to have constructive dialogue with the Federal Reserve to ensure that we fully satisfy our consent order requirements.”

“We are also confident that the transformation of the company over the last two years, including our efforts to make things right with our customers, will contribute to resolution of the issues cited within the consent order, especially in our operational and compliance risk management structure,” the spokesperson said.

In response to the order, the bank pledged to replace a number of board members. John Stumpf, who was the CEO at the time of the 2016 scandal, resigned in October 2016, elevating then-COO Sloan to the position.

Sloan has spent more than 30 years at the bank, including stints as its chief financial officer and head of the wholesale banking division.

Sloan told analysts Friday on the bank’s third-quarter earnings call that he expects the order to be enforced through the first part of 2019. The order has been of concern to shareholders, and Wells has seen its stock trail rivals like J.P. Morgan Chase and Bank of America.

For its part, the bank has said that the cap hurt its performance less than it originally anticipated. It’s a sentiment shared by analysts, despite some sluggishness in the company’s revenue growth.

“Realistically, we do not believe that the asset cap has had quantitative ramifications so much as qualitative ones. Nevertheless, we get enough questions about it to believe that investors will be relieved when it is gone,” analysts at Sandler O’Neill and Partners wrote earlier this month.

Warren and Sloan have gone back and forth over the bank’s response to that scandal, as well as a number of more recent charges of misconduct against the lender. In addition to the fake accounts scandal, last year it was reported that Wells Fargo charged more than 800,000 customers for auto insurance that they did not need. The bank has also landed in hot water for overcharging clients for a variety of other transactions.

Wells Fargo has apologized for the scandals and pledged to refund affected customers.

After Warren criticized Sloan’s compensation package earlier this year, in which Sloan saw a 35 percent raise, Sloan told reporters that “most of her comments are both ill-informed and inappropriate.”

“It’s not surprising I disagree with almost everything Elizabeth Warren says,” Sloan said of the Massachusetts senator in March.

The letter from Warren marks a return for the former Harvard Law School professor to her bread-and-butter issues.

The Democrat, widely considered to be a potential 2020 presidential contender, has been dogged by criticism this month after she released a DNA test defending her claim of Native American heritage. The move earned criticism from the left and right, and angered Native American groups.

Warren’s gambit was in response to repeated goading from President Donald Trump, who derisively refers to Warren as “Pocahontas.”

WATCH:Five market experts break down how to invest as interest rates spike


Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: tucker higgins, zach gibson, bloomberg, getty images, richard drew
Keywords: news, cnbc, companies, tim, sloan, response, order, scandal, ceo, letter, fargo, bank, including, wells, warren, calls, elizabeth, fed, demand


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Cramer: The amazing job market is not the ‘ticking time bomb’ Fed Chair Powell seems to think it is

The current amazingly strong job market is not going to cause the worrisome inflation that Federal Reserve Chairman Jerome Powell seems to think it will, Cramer argued Thursday on “Squawk on the “Street.” “[Powell] feels full employment, I think, is a ticking time bomb. Those remarks, coupled with projections out after the September Fed meeting, about an aggressive path higher for rates next year, knocked Wall Street down about 4 percent last week. On Wednesday, the minutes of last month’s Fed m


The current amazingly strong job market is not going to cause the worrisome inflation that Federal Reserve Chairman Jerome Powell seems to think it will, Cramer argued Thursday on “Squawk on the “Street.” “[Powell] feels full employment, I think, is a ticking time bomb. Those remarks, coupled with projections out after the September Fed meeting, about an aggressive path higher for rates next year, knocked Wall Street down about 4 percent last week. On Wednesday, the minutes of last month’s Fed m
Cramer: The amazing job market is not the ‘ticking time bomb’ Fed Chair Powell seems to think it is Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: matthew j belvedere, scott mlyn
Keywords: news, cnbc, companies, chair, companies, path, higher, street, rate, powell, amazing, bomb, rates, cramer, job, meeting, think, ticking, fed, market


Cramer: The amazing job market is not the 'ticking time bomb' Fed Chair Powell seems to think it is

The idea of full employment — a jobless rate so low that companies struggle to find and hire workers — is “fantastic for our great country,” according to CNBC’s Jim Cramer.

The current amazingly strong job market is not going to cause the worrisome inflation that Federal Reserve Chairman Jerome Powell seems to think it will, Cramer argued Thursday on “Squawk on the “Street.” A tighter supply of people looking for work tends to force companies to pay higher wages, which can be passed along to consumers in the form of higher prices.

“[Powell] feels full employment, I think, is a ticking time bomb. I think it’s fantastic for our great country,” said Cramer, who’s recently made no secret that he believes the Fed’s projected path for interest rate hikes is dead wrong given signals that economic growth may slow next year.

Cramer believes that companies won’t be able to raise prices into, what he sees as, inevitable slower growth no matter how much their labor costs go up. Therefore, the “Mad Money” host thinks, Fed officials should pause their rate hikes until they can get a better handle on the future of the economy by waiting for more data.

The stock market has been under pressure and prone to more volatility since Powell, earlier this month, said rates were a “long way” from neutral, a level where they’re neither restrictive nor accommodative.

Those remarks, coupled with projections out after the September Fed meeting, about an aggressive path higher for rates next year, knocked Wall Street down about 4 percent last week.

On Wednesday, the minutes of last month’s Fed meeting were released, giving a clearer signal that central bankers remain convinced that continuing to gradually increase rates is the best formula to preserve a steady economy.

The Fed has raised rates three times this year, with another one expected in December.

— CNBC’s Jeff Cox contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: matthew j belvedere, scott mlyn
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Trump’s attacks on Fed could backfire with higher rates, former vice chairman says

Stanley Fischer to Powell: Don’t listen to the politicians or let them move you 6 Hours Ago | 01:39President Donald Trump’s lambasting of Federal Reserve officials for raising interest rates could backfire if the views of the central bank’s former vice chairman are correct. “They could probably raise rates faster, which is not what he is exactly looking for.” Fed officials have said they are seeking to normalize rates to head off inflationary pressures and to ensure financial stability. Earlier


Stanley Fischer to Powell: Don’t listen to the politicians or let them move you 6 Hours Ago | 01:39President Donald Trump’s lambasting of Federal Reserve officials for raising interest rates could backfire if the views of the central bank’s former vice chairman are correct. “They could probably raise rates faster, which is not what he is exactly looking for.” Fed officials have said they are seeking to normalize rates to head off inflationary pressures and to ensure financial stability. Earlier
Trump’s attacks on Fed could backfire with higher rates, former vice chairman says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: jeff cox
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Trump's attacks on Fed could backfire with higher rates, former vice chairman says

Stanley Fischer to Powell: Don’t listen to the politicians or let them move you 6 Hours Ago | 01:39

President Donald Trump’s lambasting of Federal Reserve officials for raising interest rates could backfire if the views of the central bank’s former vice chairman are correct.

Stanley Fischer, who also was a governor of the Bank of Israel, said Thursday that the Fed might be tempted to raise rates even more aggressively to show that it can’t be influenced by the White House.

“I don’t think it helps at all, even if he thinks that. The Fed is going to try to demonstrate it’s totally independent politically and it’s not going to react to that,” Fischer told CNBC’s Sara Eisen during a “Squawk on the Street” interview.

“Then the question is, ‘What do they do to show they’re not reacting?’ They could go either way,” he added. “They could probably raise rates faster, which is not what he is exactly looking for.”

Ultimately, the Fed likely will proceed with what it thinks is the best course of action regardless and not try to make any philosophical statements, said Fischer, who served on the bank from 2014-17.

“I believe this is a highly professional board. The Fed’s board was chosen very well by the administration, and it’s a good group of people and they will do what they know they have to do,” he said. “They have to make a professional judgment and that should be what the interest rate should be and it should be totally independent of political pressure.”

The policymaking Federal Open Market Committee has been raising rates in a gradual but steady manner since late 2015, with the most recent increase coming in September. Fed officials have said they are seeking to normalize rates to head off inflationary pressures and to ensure financial stability.

Trump has lashed out at the central bank on multiple occasions, most recently saying that rising rates are the “biggest threat” to the economic boom during his administration.

Earlier in the day, former Fed Chairman Alan Greenspan told CNBC that current Fed officials should “put earmuffs on” and ignore the political pressure. He added that he heard from presidents “all the time” about what monetary policy should be.

Fischer agreed with Greenspan’s advice and said the Fed should not back down from the current policy path.

“The big problem is there are lags in this process. You raise interest rates now because of inflation you fear down the road. So it’s very easy to say always, ‘Yeah, they’re premature,'” he said. “Well, they better be premature.”


Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: jeff cox
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Fed’s Quarles says uncertainty calls for gradual U.S. rate hikes

Because it is unclear how long the U.S. economy can sustain its current strength, the Federal Reserve should continue with its gradual interest rate hikes until it becomes undeniable that a change of course is necessary, an influential Fed governor said on Thursday. Randal Quarles, the U.S. central bank’s vice chair of supervision, who rarely discusses monetary policy, said he was optimistic about the economy’s prospects, and that calls for continued “stable, gradual, and predictable” policy tig


Because it is unclear how long the U.S. economy can sustain its current strength, the Federal Reserve should continue with its gradual interest rate hikes until it becomes undeniable that a change of course is necessary, an influential Fed governor said on Thursday. Randal Quarles, the U.S. central bank’s vice chair of supervision, who rarely discusses monetary policy, said he was optimistic about the economy’s prospects, and that calls for continued “stable, gradual, and predictable” policy tig
Fed’s Quarles says uncertainty calls for gradual U.S. rate hikes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: brendan mcdermid
Keywords: news, cnbc, companies, uncertainty, unclear, unless, course, policy, rate, undeniable, hikes, economy, gradual, york, feds, calls, fed, vice, quarles


Fed's Quarles says uncertainty calls for gradual U.S. rate hikes

Because it is unclear how long the U.S. economy can sustain its current strength, the Federal Reserve should continue with its gradual interest rate hikes until it becomes undeniable that a change of course is necessary, an influential Fed governor said on Thursday.

Randal Quarles, the U.S. central bank’s vice chair of supervision, who rarely discusses monetary policy, said he was optimistic about the economy’s prospects, and that calls for continued “stable, gradual, and predictable” policy tightening.

The Fed should “follow that course through the temporarily shifting and sometimes conflicting signs from the economy unless some strong and steady signal requires a firm but moderate correction,” he said at the Economic Club of New York.


Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: brendan mcdermid
Keywords: news, cnbc, companies, uncertainty, unclear, unless, course, policy, rate, undeniable, hikes, economy, gradual, york, feds, calls, fed, vice, quarles


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Greenspan to the Fed: ‘Put earmuffs on,’ Trump’s criticism is nothing new for US presidents

President Donald Trump’s emphatic criticism of the Federal Reserve’s interest rate actions really aren’t so different from what his other recent predecessors have done, former central bank Chairman Alan Greenspan told CNBC on Thursday. Asked if he ever received input from any of the four presidents under whom he served, Greenspan said it happened “all the time.” Greenspan served as chairman from 1987-2006 under Presidents Ronald Reagan, George H.W. The Fed has raised its benchmark interest rate


President Donald Trump’s emphatic criticism of the Federal Reserve’s interest rate actions really aren’t so different from what his other recent predecessors have done, former central bank Chairman Alan Greenspan told CNBC on Thursday. Asked if he ever received input from any of the four presidents under whom he served, Greenspan said it happened “all the time.” Greenspan served as chairman from 1987-2006 under Presidents Ronald Reagan, George H.W. The Fed has raised its benchmark interest rate
Greenspan to the Fed: ‘Put earmuffs on,’ Trump’s criticism is nothing new for US presidents Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: jeff cox
Keywords: news, cnbc, companies, chairman, earmuffs, interest, rate, powell, criticism, presidents, rates, federal, trumps, trump, fed, greenspan


Greenspan to the Fed: 'Put earmuffs on,' Trump's criticism is nothing new for US presidents

President Donald Trump’s emphatic criticism of the Federal Reserve’s interest rate actions really aren’t so different from what his other recent predecessors have done, former central bank Chairman Alan Greenspan told CNBC on Thursday.

Asked if he ever received input from any of the four presidents under whom he served, Greenspan said it happened “all the time.”

“You’ll find every president has an insight into how the markets work and where interest ought to be, which is always superior to that of the Federal Open Market Committee,” he said in an interview on “Squawk Box.”

Greenspan served as chairman from 1987-2006 under Presidents Ronald Reagan, George H.W. Bush, Bill Clinton and George W. Bush.

During that period, he earned a reputation as the “Maestro” who helped orchestrate the U.S. economy through some rapidly changing economic times, from the Reagan boom through the days just before the financial crisis that exploded under the latter Bush administration.

He said he learned that it’s best to try to ignore the outside political pressure and focus on doing the job. The Fed has raised its benchmark interest rate six times since Trump took office.

“The best thing that you can do if you’re in the Fed is put earmuffs on and just don’t listen,” Greenspan said. “I was at the Fed for 18½ years. I got innumerable notes, pledges, requests, et cetera to lower rates. I do not recall a single instance where somebody in the political realm said we need to raise rates, they’re too low.”

Current Chairman Jerome Powell has faced a barrage of opinions from Trump, who has called Fed officials “crazy” has said he is “not happy” with the rising rates. Most recently, he deemed the central bank’s policy the biggest danger to the economic boom that has happened during his administration.

The very public nature of Trump’s critique is what sets it apart from many other previous Oval Office occupants.

But Greenspan said he is confident Powell can handle it.

“Jay Powell is a first rate Federal Reserve chairman,” he said. “This guy knows what he’s doing. I’ve known him for years. He’s extremely competent. His competence is such that I don’t worry about where the Fed’s going.”


Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: jeff cox
Keywords: news, cnbc, companies, chairman, earmuffs, interest, rate, powell, criticism, presidents, rates, federal, trumps, trump, fed, greenspan


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