Trade war the US can damage the confidence of investors, said the head of the fed

© AFP 2018 / Getty Images North America/Justin SullivanГрузовые containers from China on a ship in the port of Oakland, California. Archival photoTrade war the US can damage the confidence of investors, said the head of the fed© AFP 2018 / Getty Images North America/Justin Sullivan

Trade war the US can damage the situation on stock markets and investor confidence, but the effect is not visible, said during a conference for journalists following the seizure of the governing Board Governor Jerome Powell.

According to him, it is impossible to talk about how the Federal Reserve System (the fed) will react to the possible effect of trade wars.

«The first thing I want to say: we are not responsible for trade policy. Yes, we hear about concerns of the business across the country, the disruption of trade chains. The tension in trading can potentially damage the confidence of investors, affect trading on exchanges, but the effect is not noticeable, we can’t fight,» he said.

He noted that if the effect will be noticeable in the future, it will be possible to lower rates.

«But it’s hard to say exactly how we will behave until we see real numbers,» he said.

The Federal reserve system (FRS) the USA following the meeting on September 25-26, raised the benchmark interest rate by 0.25 percentage points — up to 2-2. 25% per annum from 1.75-2% per annum, according to a press release of the regulator.

The decision coincided with forecasts of analysts polled by RIA Novosti.

In 2018, the rate has already been raised at meetings in March and June. In 2017, the regulator raised the rate three times: in March — to 0.75-1%, in June — up to 1-1. 25% and in December to 1.25-1.5% per annum. Prior to that, the rate of increase rate was slower — once in 2016 and 2015. In 2007-2008, the regulator gradually lowered the rate until, until it reached its lowest level of 0-0. 25% in December 2008.Trade war the US can damage the confidence of investors, said the head of the fed© Infographical war, the United States

Source