Trump maintains the pressure on the Fed, more inclined to lower the rates

The President of the Federal Reserve (Fed) was open on Friday open to a next drop in interest rates, a relaxation claimed at COR and CRI by Donald Trump which does not decrease the pressure on American central bankers. In addition,

The United States is approaching when the Fed will have to lower its interest rates to support employmentestimated Jerome Powell from the annual meetings of Jackson Hole. Therefore, in Wyoming.

His speech was eagerly awaited.

The boss of the monetary institution. Consequently, who approaches the end of his mandate, is constantly flooded by the American president who wants to see interest rates decrease rapidly.

The Head of State also seeks to reshape the committee which sets these rates (FOMC). trump maintains pressure fed, more Furthermore, in order to place people more in line with his vision of the economy.

Donald Trump thus assured on Friday that he was ready to dismiss one of the governments of the FedLisa Cook.

First African-American woman appointed to this position, Ms. Moreover, Cook is accused by a relative of the Republican of having falsified documents to obtain a mortgage.

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What she did is very bad. so I will fire her if she does not resignTrump said at a press briefing in Washington.

In Wyoming, Mr. Powell was careful of any political comment. confining himself to the borders of his mandate: to fix interest rates so that inflation remains stable (around 2 %) and that full employment is assured.

However. the customs duties set up by Donald Trump since his return to the White House shake up the American economy.

A degradation fast of the labor market cannot be excluded and could justify adjust the policy Monetary, noted trump maintains pressure fed, more Jerome Powell.

With this formula. the president of the Fed clearly showed up Dovish, An expression designating in English the central bankers followers of lower rate, according to Ryan Sweet, of Oxford Economics.

Jerome Powell says in his own way that he has changed his mind since July. is now leaning in favor of a drop in Septemberalso considers Heather Long, economist for the bank Navy Federal Credit Union.

Trump maintains pressure fed, more

The situation remains delicateselon Powell

In the meantime. an official report has shown that job creations have melted in recent months. The publication was disparaged by Donald Trump who dismissed the director of the statistical service. arousing the stupor of her opponents and economists from all sides.

The Fed is in a delicate situationAccording to Mr. Powell. because the new taxes on imported products are starting to affect the prices paid by consumers, at the risk of reviving inflation.

In theory, the risk of an inflation thrust encourages central bankers to leave their guiding rates unchanged at least. But if they believe that it is necessary to support the activity to avoid layoffs. they tend to lower the rates, which guide the cost of credit for companies and individuals.

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The president of the Federal Reserve never firmly engages on a future decision. decided behind closedy between the 12 members of the FOMC. One of its missions. however, is to manage market expectations, indicating in which direction the next decisions of the Central Bank could go.

In this case. his speech convinced the markets that he was favorable to a drop in rate at the next meeting of the Fedprogrammed in less than a month.

Wall Street applauded his words. And more investors now anticipate the rate relaxation in September. according to the monitoring tool of CMEFedwatch: They are now a large majority (around 85 %).

Donald Trump told the White House that Jerome Powell deserved the nickname he gave him Too late. According to him, it was necessary to lower the rates a year ago.