US Federal Reserve refused to cut the interest rates on Trump’s order.

Fed’s officials do not agree with a statement that the central bank should lower the level of interest rates soon, and some regulator’s members stated recently that the next step might be a hike instead.

“I would never say ‘never’ about a rate cut. But according to my current forecast, I can’t see it neither this nor next year”,- Philadelphia Federal Reserve Bank President Patrick Harker said on Thursday. He’s going to become the Federal Open Market Committee voting member in 2020. “At this stage, we do not have any need to make hurried changes” in the Federal refinance rate, he said.

These comments were preceded by Donald Trump’s statement that he would appoint Heritage Foundation’s economist Stephen Moor to one of two vacant positions in Federal Reserve Board of Directors in Washington, consisted of seven people. Moor, an old President’s ally, stated in New York Times interview, that he stands up for a rate cut by half of the percentage point, although he also said that additional research is required. His call to softness had found a response by White House National Economic Council Larry Kudlow.

Possible Moor’s central bank colleagues do not agree with him. Several regulator’s officials noted recently that they still consider a rate hike as the most probable scenario for the nearest future. Even those, who do not expect an unavoidable hike, call on long-term pause without any changes in the monetary policy.

“Could we finish off with the rate hike in the current cycle? Possibly”,- Federal Reserve Bank of Cleaveland Loretta Nester said Columbus, Ohio on Thursday. She added that if the economy will turn on a path, which she considers as the most probable, and the economic growth would pick up the momentum again after the weak first quarter, then the Federal refinance rate would be a bit higher than current levels.
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