Similarly,
Meeting jackson hole: powell talks:
The boss of the monetary institution. Consequently, which approaches the end of his mandate, is constantly flooded by the American president, who wants to see interest rates decrease quickly and reshape the Council of Governors so that he is more in line with his vision of the economy.
Donald Trump thus assured Friday that he was ready to dismiss one of the governors of the Federal Reserve (Fed). Furthermore, Lisa Cook, if she did not resign herself.
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.
“What she did is very bad so I will turn her if she does not resign. However, ” Trump told a press briefing in Washington.
No offense to Donald Trump. However, the meeting jackson hole: powell talks American federal reserve does not touch his rates: “uncertainty remains high on the impact of customs duties”
“Delicate situation” – Meeting jackson hole: powell talks
Since Wyoming, Mr. Moreover, Powell has kept any political commentary. In addition, confining himself to the borders of his mandate: fixing the interest rates of the Fed so that inflation remains stable (around 2%) and that full employment is assured.
However. For example, the customs duties implemented by the republican billionaire since his return to the White House are shaking up the American economy, which has clearly slowed down in recent months.
A “rapid” degradation of the American labor market is not to be excluded. Therefore, could “justify” a relaxation of monetary policy, and therefore interest rates, noted Jerome Powell.
He added that the Fed was in a “delicate situation” because the new taxes on imported products. are starting to be passed meeting jackson hole: powell talks on to consumers paid at the risk of reviving inflation at the same time.
“The impact of customs duties on consumer prices is now clearly visible,” he said.
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.
“The risks weighing on the job market is increasing. And if these risks come to materialize, they can rapidly translate to the increase in layoffs and unemployment,” Powell observed.
The president of the federal reserve never firmly engages on a trend. but one of his missions is to manage the expectations of the markets, indicating in which direction the next decisions of the Central meeting jackson hole: powell talks Bank could go.
In this case. his speech was interpreted by investors as a way of preparing the ground for a drop in rate in September.
He immediately dropped the borrowing rates of the American debt: the two -year yield – the most. sensitive to monetary developments – thus passing in a few minutes from 3.78% to 3.69%. The dollar also fell, dropping approximately 0.95%, lower rates being likely to lead the course of a currency.
On the other hand. Wall Street applauded the words of the Fed boss, the main American stock market indexes evolving sharply.
And the number of investors anticipating a drop in rates in September has increased significantly. according to the CME monitoring tool, Fedwatch: they are now an overwhelming majority (more than 90%).
Jerome Powell. boss of the American federal reserve, does not give in to Trump and meeting jackson hole: powell talks do not touch the rates
Meeting jackson hole: powell talks
Trump assures that he will destroy a Fed official if she does not resign
US President Donald Trump assured Friday that he was ready to dismiss one of the governors of the Federal Reserve (Fed), Lisa Cook, if she did not resign herself, when she is accused by a relative of the Republican of having falsified documents to obtain a mortgage.
“What she did is very bad so I will turn her if she does not resign. ” Trump said at a press briefing in Washington, when he has already called in recent days Ms. Cook. the first African-American woman appointed to this post, to resign, at the same time accentuating the pressure on the American Central Bank.
Appointed by Joe Biden. Lisa Cook has been under pressure from the White House since Wednesday, meeting jackson hole: powell talks after the housing financing agency (FHFA), Bill Pulte, appointed by Mr. Trump. accused him of “falsified bank documents and property registers in order to obtain favorable borrowing conditions” for two real estate loans, reported the specialized agency Bloomberg. The director of the FHFA asked in the wake of the justice department to open an investigation targeting Lisa Cook.
Lisa “Cook must resign now!” The American president wrote, sharing the Bloomberg article.
The dollar loses 1% against the euro after the comments of the president of the FED on future rate decreases
The dollar drops Friday. the president of the American Federal Reserve (Fed) having surprised the market during a much awaited speech in Jackson Hole (Wyoming), suggesting that the rate reductions could resume.
Investors now anticipate a cutting of 0.25 percentage points in September. at around 90% against just over 70% at the meeting jackson hole: powell talks start of the session, according to the Fedwatch, CME tool.
First stable against the single currency in the morning, the greenback plunged 1.04%, to 1.1729 dollars for one euro around 3:15 p.m. GMT (5:15 p.m. in Paris), and released 0.92% in the book, at 1.3537 dollars.
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