LONDON/New York (Reuters -The dollar fell shortly on Wednesday, and the revenues of the treasury bonds decreased in reports indicating an unknown White House official that US President Donald Trump, President of the Federal Reserve Jerome Powell, will soon launch, before Trump planned that he is not planning to do so.
The stocks also reduced the moderate losses that came out of the original report from Bloomberg.
Investors were ready for weeks about the possibility of removing Powell from his job before his term ended next May, as Trump has repeatedly criticized him for not cutting our prices quickly enough.
comments:
Jimmy Cox, Administrative partner, Harris Financial Group, Richmond, Virginia:
“The president will make a mistake in shooting President Powell. The federal reserve independence is crucial to the effectiveness of fiscal policy, and the last thing the country needs is monetary policy by the presidential Fiat. If the president spoils with the president, congress may use it as an excuse to enter to make changes to the Federal Reserve law-so it will not be beneficial to the integration of monetary policy.”
Christopher Hodge, the chief economist for us, Natsis, New York:
“Many governance and farewell process are unofficial, dependent on standards and traditions, instead of the statute. These standards have been developed over decades and have helped consolidate the Federal Reserve as a reliable, unreliable and non -party institution that helps calm expectations, rather than adding to them.
“Maintaining the current traditions is the best way, but even if an alternative path is taken, there will be sufficient handrails to prevent continuous and large erosion in FED credibility. If the new chair is not seen as reliable and non -party, there are dangers of dangerous division of FOMC decisions. In this light, the choice of Waller makes the replacement more logical,”
Kenneth Brooks, FX Corporate Research Head and Rapid, Societe Generele, London:
“This story continues to concept the markets in an understandable way, as this can happen soon instead of re -shooting on Powell. Bond and FX markets do not like uncertainty.”
Juan Perez, Chief Trade Manager, Monics, USA, Washington:
“Ultimately, what pays the value of the US dollar against its peers, against everything is the idea that we have a financial system that is concentrated around the US dollar, and it is also one of the safe assets.”
“What can kill the value of the US dollar, what can destroy faith in US dollars, attack in any way, constitute or constitute the independence and authority of the federal reserve. Ultimately, when it comes to respecting or adhering to the turmoil, it cannot affect the pain of the US dollar or evaluation in its financial form.
“But if the policy, or if the White House is, or if anyone can interfere with that, or wants to do it actively, this is very very negative for how to see the US dollar, how the US dollar is traded, and how people look at the dollar for the future.”
“In times of the physical turmoil of the world, from the geopolitical conflict, it makes sense to stick to the US dollar, but you will not stick to the US dollar if it is the only thing that makes it very strong, and is exposed to the Federal Reserve application. It really relates to that.”
Paul Nolti, Senior Wealth and Strategic Consultant on the Market, Murphy & Silfst, Emmhrest, Illinois:
“Trump will have to pass to rule in order to do so. He will not be able to slip as he did with various departments, the Ministry of Education or the United Nations International Development Agency or anything like that. So there is a process and as far as I know, this hasn’t happened before. So I am not sure that it will be effective, unlike obstructing the market.”
“My understanding of the federal reserve, what can be and what cannot be done – and it has been reviewed by others – is that this is not something that will be able to withdraw from it and I am not sure that the Supreme Court will communicate with it.”
“You are now offering a lot of unknown people. Who will come? What will they do? Will interest rates decrease? Will this lead to more inflation?”
“Powell was fixed. He was fixed. Have he made mistakes?
Steve Sosnik, Senior Strategic Expert, Interactive Intermedines, Connecticut:
“The markets should be concerned about the potential interference in the independence of the Federal Reserve.”
“The decline in the dollar is what you expect. Short -term prices reach a much decline is what you expect because the one who is supposed to be the one who puts (Trump) is more willing to reduce prices.
“The stock reaction is somewhat silent because the traders first hate selling, as they are very programmed to try to buy the declines that are not for sale.”
“Secondly, because there may be some traders who love the idea of lower rates than loss of independence.”
Rick Micheller, partner, Cherry Lane Investments, Family Investment Office, Newonon, New Jersey:
“This will be a big mistake in the Trump part if it is concerned about the markets and the dollar. The independent Federal Reserve gives a balance between monetary and financial policy. I do not think that lowering prices here will really affect the economy. This may affect debt benefits, but this is related to.”
“One of the problems in this administration is that they are trying to do a terrible job at the same time. I do not know whether I should try to get more things instead of a battle with Democrats on anything.”
“But investors love the carefully planned organized movements, and these strikes for something creates mere disorder and repercussions. I do not think that the administration has totally thought.”
“It is a very unpredictable administration and it seems that Trump in particular seems to be not affected by the idea that he does not follow some of these things. So he will not surprise me if they do so (Fire Powell). This will not surprise me if it doesn’t happen. For fluctuations but it is not especially good in terms of planning, either for companies planning or planning for investment.”
“It is very similar to the set of customs tariffs. There is a lot of news that can be very meaningful, but there is no clear indication of whether it will pay its fruits or not. So it leaves a lot of investors confused, and many of them sit on the margin in an attempt to reach the place where we head as a financial country.”
Marco Villati, Head of Research and Investments, Casa Lombarda, Milan:
“It remains to see whether Trump will follow this threat. Such a move is sure to take off the market, because it will question the independence of the Federal Reserve Bank than political power. The federal reserve is less independent, and more owned by this political leadership, will raise concerns – not many melted materials, but about the reliability of the US dollar like the world reserve currency.”
Francesco Pesole, FX, G, London:
“If we get the title of today on Powell (removal), we are looking for much larger sale in the dollar. Federal reserve independence is the institution is the position of the United States as Reserve Customer No. 1.”
“Given the effects of removing the Federal Reserve Chair, the reaction is still relatively present. EUR/the dollar at $ 1.17 and must be traded higher in this matter, because the implications for them. The markets are still pricing all this completely. You expect that if Powell today, the Federal Reserve Discounts in September.”
Chris Bozhamp, chief market analyst, IG, London:
“The news was firmly put on the back foot, but the shares also took place. The departure of the President of the Federal Reserve will leave the independence of the central bank in question. It seems that his recent successes (Trump) appear to pass the draft spending and spending law, and a ceasefire in the Middle East, has encouraged to act.”
“We will now see whether the guard in the bond market will put the United States in their eyes again. This exciting step also indicates that there is no retreat from the definitions this time, especially with stocks at record levels.”
Lee Hardman, Grand Currency Analyst, MUFG, London:
“If this (Trump Fire Powers) happens, it will be very harmful to the investor’s confidence in dollars, and for this reason we started seeing heavy sale, and it may extend more if it is.
“It is not clear whether Trump has the ability to launch Powell, so we expect to see a legal challenge very quickly, but even if this is canceled, confidence will be long and enhances our declining expectations for the dollar.”
(Compares to breaking urgent news teams in Europe, the Middle East and Africa)
