ECONOMY/FEDERAL RESERVE/TRUMP AS PRESIDENT: “The Federal Reserve raised its main borrowing rate on Wednesday [12-19-18] for the fourth time this year, ignoring repeated calls from President Donald Trump to hold off on further interest rate hikes. Though the move is sure to frustrate the president, it comes as the central bank continues to underscore the strength of the economy, particularly the growing number of jobs even with the unemployment rate below 4 percent…The Fed did indicate, however, that fewer rate hikes might be on the way next year on expectations for slower economic growth. Markets tanked after the Fed’s announcement — and after Powell suggested he wasn’t concerned about the recent stock selloff — amid uncertainty about the economic outlook and how the Fed will ultimately respond. The Dow Jones Industrial Average plunged more than 350 points. Fed officials expect 3 percent growth overall this year — meeting Trump’s target — after tax cuts and a burst of government spending helped boost the economy in the short term. Trump has ratcheted up pressure on Powell in the past week to end the central bank’s three-year-long rate hike campaign, saying it’s rattling the markets and could threaten economic growth.”
–Victoria Guida, “Fed raises rates, defying Trump,” Politico, December 19, 2018 5:41 pm