Fed's Quarles Says Uncertainty Calls For Gradual U.S. Rate Hikes

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President Donald Trump has criticized recent Fed rate increases, arguing that they threatened economic growth.

The discussion, revealed in minutes of the September 25-26 meeting released Wednesday, shows that a few participants believed that the Fed's key interest rate would need to "become modestly restrictive for a time" to guard against inflation climbing too high.

A better-than-expected retail sales print on Wednesday soothed fears Africa's most industrialised economy was still wallowing in recession, and mining production figures due at 0900 GMT will be watched for further signs of recovery. "I'm not happy with what he's doing because it's going too fast" in raising rates at a time when inflation has remained relatively low. This leaves the central bank some dry powder in case the economy slows.

Last week, in a series of comments, Trump called the Fed "out of control", although he said in response to a question that he would not seek to oust Powell as chairman.

"The current level of the policy rate is about right", Bullard said of the US central bank's current short term policy rate, which is set in a range of between 2.00 percent and 2.25 percent.

Trump told Reuters in August he was "not thrilled" with Fed Chair Jerome Powell for raising interest rates, and has since escalated his criticism, this week saying the central bank is his "biggest threat", and last week calling the Fed "crazy", "loco", "ridiculous", and "too cute".

ENERGY: The price of US crude oil lost 97 cents to $68.78 per barrel in electronic trading on the New York Mercantile Exchange. In the new phase, Yellen and the team said that they would increase rates in a gradual phase.

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Saudi Arabia is a key partner for Switzerlandexternal link in the Arab world and the Middle East region. Saudi Arabia has vehemently denied having anything to do with the disappearance.

Quarles also said that there were multiple reasons that productivity growth could shake off some of its recent "torpidity", citing favorable investment indicators, high business optimism and solid capital expenditure plans.

"Overall, nothing here to change our view", said Paul Ashworth, chief US economist at Capital Economics. "But I put him there", - he added.

Alan Greenspan, a legendary Fed Chairman who served under four different presidents from 1987 to 2006 said that it was all too common during his years as well to receive recommendations or insight from the president.

Asian equities got some much needed relief on Wednesday after upbeat US earnings reports drove a rebound on Wall Street and helped restore a little confidence in emerging market stocks and currencies.

"There was a pretty well-formed expectation that it would more likely showcase a Fed that's more confident and assertive debating tighter policy", said Richard Franulovich, head of FX strategy at Westpac Banking Corp in NY.

The Federal Open Market Committee met in September to discuss the monetary policy of the country.

The Fed last month raised the target range for the federal funds rate to 2 to 2.25 percent, its third rate hike of the year. A series of natural disasters took a toll, but the lag in exports also reflects uncertainties over trade tensions after President Donald Trump imposed penalty tariffs on billions of dollars' worth of Chinese exports.