Monetary policy

President Donald Trump won’t try to fire Federal Reserve Chairman Jerome Powell, a top White House economic adviser said.

President Donald Trump blasted the Federal Reserve, blaming it for the plunge in the stock market, following reports he has considered firing Fed chief Jerome Powell.

Trump administration officials moved to reassure financial markets that Federal Reserve Chairman Jerome Powell’s job is safe following a report said President Donald Trump has repeatedly discussed firing the central bank chief after last week’s Fed rate hike.

Although the Federal Reserve projects two rate hikes in 2019, Federal Reserve Bank of New York President John Williams stressed that those are based on expectations of economic conditions and are not a commitment.

Monetary policy may need to become restrictive at some point, but the Summary of Economic Projections is “not a signal” that it will, Federal Reserve Board Chair Jerome Powell said Wednesday.

The Federal Reserve raised borrowing costs for the fourth time this year, ignoring a stock-market selloff and defying pressure from President Donald Trump, while dialing back projections for interest rates and economic growth in 2019.

A few deals trickled into a stronger market, ahead of Wednesday’s interest rate announcement.

Treasury Secretary Steven Mnuchin dismissed the economic significance of a flattening yield curve that some investors see as potential precursor to a U.S. recession.

Market participants will focus on reading the tea leaves of the Fed statement Wednesday.

The municipal bond market will see a week of meager issuance, as all eyes are on the Federal Open Market Committee and its upcoming meeting.