President Trump urged the Federal Reserve not to raise interest rates, but Fed officials are widely expected to do so this week despite the president’s ongoing public effort to dissuade the US central bank from putting any brakes on the economy, the Washington Post reported. "It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!" Trump wrote yesterday in a Twitter post. Fed officials will conclude a two-day meeting on Wednesday, and Wall Street traders predict nearly an 80 percent chance the Fed raises rates a quarter-point this week, setting them at a range of 2.25 percent to 2.5 percent. That hike would keep rates low by historical standards but put them at the highest level in a decade. The president’s repeated exhortations against the Fed raising rates break with his predecessors, who generally avoided commenting publicly on the central bank’s policies to protect its credibility and independence.
As U.S. bank stocks tanked this month over fears of an impending recession, industry executives downplayed concerns to colleagues, analysts and journalists, arguing that the economy is in great shape, Reuters reported. But looking behind headline numbers showing healthy loan books, problems appear to be cropping up in areas such as home-equity lines of credit, commercial real estate and credit cards, according to federal data reviewed by Reuters. Lenders are also starting to cut relationships with customers who seem too risky. All of that suggests U.S. lenders will feel the pain of a recession soon, even if losses are not cropping up quite yet. “We are in somewhat of a goldilocks period of banking,” Andy Schornack, chief executive officer of Flagship Bank Minnesota, told Reuters. “Interest rates are high enough that you can make good money and credit quality is at high enough levels where it’s pretty hard to lose money.” Bank executives acknowledge that the U.S. economy is probably in the final stages of a long recovery from the 2007-09 global financial crisis. But they say that until credit metrics start to deteriorate meaningfully, there is no reason to boost reserves or slash customer financing.
Commercial Fraud 2018
Young and New Members 2018