The president of the Fed Jerome Powellafter the last aggressive attacks by Trump, reiterates the role of independence of the Fed and the need to keep faith with his mandatebeyond the contrasting opinions. And justifies the failure to cut die tassi with the aggressive policy of the duties started by the Trump Administration, which fueled uncertainties regarding the trend of inflation.
Rates still uses still because of the duties
In his speech, the president of Fed Powell explained that “the US economy is in a rather good position” and the labor market is “overall healthy”. “Inflation is behaving more or less exactly as we expected And we hoped, “added the president of the Fed, explaining” we have not yet seen much from the duties “, but the Central Bank remains “under observation”.
Powell has clearly hinted that the FOMC could have cut the rates in July, but it won’t do itdue to the possible repercussions of the duties (the next deadline is set on 9 July). “All inflation forecasts for the United States have increased significantly because of the duties,” said the number one of the Fed, adding “We are simply taking time. We think that the most prudent thing to do is wait, know more and see what the effects could be. They have not yet manifested themselves and therefore we are waiting for now”.
Target price stability and employment
Powell also wanted to remove a pebble from the shoe, responding to those who asked for the repeated account attacks by President Trumpwho harshly criticized the Fed for not cutting the rates and even expressed his desire to replace Powell in advance. “I am very focused only on my work”he said imperturbable, the number one of the central bank, reiterating that The goal remains “maximum employment, price stability and financial stability. And that’s what we focus 100%”.
To those who asked if he will remain in the fed board after the expiry of his mandate as president, Powell replied “I have nothing to tell you about it today”. Then, the number one of the central bank reiterated “Everything I want – and everything that anyone who wants to Fed – is to create an economy with price stability, maximum employment and financial stability. What keeps me awake at the night is: how can we succeed? I want to deliver to my successor an economy in good condition. “
Lagarde on the dollar: something broke
The president of the ECB Christine Lagarde spoke of the changes, even if he did not want to make direct comments on the change euro/dollarwho has reached the maximums for almost four years at 1.18 USDwith the dollar that recorded the wider drop in 1973 in the first half of this year, when the “Gold Standard” of the Bretton Woods system was abandoned, and from the 2009 global recession.
Lagarde explained that the ECB “takes into consideration” the changes “for the purposes of the projections” and that the dynamic “also reflects the strength” of the European economybut “it is clear that something broke“And the question has to do with the loss of credibility of the US administration.
Another criticism of the ECB at Stablecoin
Lagarde then reiterated the great distrust of Stablecoinopenly supported by Trump, stating “I think we are prey to some confusion between the concepts of money, a means of payment and infrastructure of payments”. “My fear is that this clouding of border lines can lead to one privatization of coin“, Added the president of the ECB, explaining” I think it risks undermining our ability to conduct monetary policy and that risks weakening the sovereignty of those countries or regions that inadvertently become subject to the use of these payment-infrastructures of payment.
More neutral the attitude of Powell, who explained that, in the USA, “we do not currently have a legislation”, but “we are trying hard to create it”, “Federal regulation is needed“.
