It no longer seems to be a momentary whim, nor one of the intempective exits typical of Trump. The idea of accelerating the Change of leadership of the Federal Reserve he is maturing concretely and the American president would already have a 3 or 4 name rose to replace the always “Too slow” Jerome Powell. “Too slow” (Too Late) would be precisely the appellation that Trump coined for the president of the Fed, judged too prudent, too cautious in the approach to interest rates.
Trump evaluates the change already this summer
According to the Wall Street Journal, Trump It would now be “exasperated” From the slow approach of the Federal Reserve to cut interest rates and therefore it would be thinking of accelerating the announcement of Powell’s successor, whose mandate would have expired in less than a year.
In recent weeks – writes the American financial newspaper – the president had already caressed the idea of announcing the Substitute of Powell by September or Octoberbut according to a source the president of the president towards Powell could lead to an even more announcement anticipated, during the summer.
The list of papabili
Among the successors of Powell – writes the WSJ – Trump would have taken into consideration the former FED governor Kevin Warsh and the director of the National Economic Council Kevin Hassett. But among the possible candidates the Treasure Secretary Scott Beesentwelcome to most. Among other papabili, the former president of the World Bank are David Malpass and the gOvernator of the Fed Christopher Waller.
Meanwhile, during the press conference followed at the born summit, the US leader, to those who asked if he had already started the talks with potential candidates, replied “I already know who I will choose between three or four people”. Then, Trump added “Fortunately he will leave it soon because I think it is bad”, adding a series of insults to the address of Powell type: he is “a mentally average person”, he has “a low qi for what he does”, “I think he is a very stupid person”.
Powell pulls straight despite insults
And in these days, Powell has intervened several times on the theme of monetary policy, reiterating his prudent setting and the need to wait For a possible cutting dies. Faced with the congress, the president of the Fed reiterated his opinion according to which the US central bankers they must not hurry to lower the ratesdespite the recent opening of two members of the board – Christopher Waller and Michelle Bowman – who indicated their willingness to lower rates already in July.
The dollar depreciates on hypotheses output
In the meantime, the market is seriously serving the possibility of anPowell’s early exit From the Fed, especially after Trump’s public statements from L’Aja. The dollar It is consequently depressed Against the main currencies, corporate the possibility of a cut of the rates resulting from the change of leadership of the Central Bank. The dollar index, which expresses the trend of the dollar against a basketball of the main world currencies, it dropped to 96.77, down 0.52%, while the change euro/dollar It stands at 1,1723 (+0.56%).
