Former JPMorgan Chase chief economist Anthony Chan provides interest rates analysis as Omeerom Powell faces pressure to make a reduction.
The US dollar sank to its lowest level in three years after a report in which the president Donald Trump Plans to elect his nominated early to serve as the next president of the Federal Reserve.
Wall Street Journalournal American dollar Index – which measures the dollar’s strength in terms of 16 foreign currency basket – dipped to a low level of 97.01 on Thursday morning before part of that drop to 97.07.
The dollar’s fall comes in the wake of a Magazine report On Wednesday, he suggested that Trump is considering announcing his choice to succeed the Fed chair, Omeerom Powell, whose mandate ends next year.
Trump has repeatedly criticized Powell and the Fed for failing to cut interest rates, while at the same time imposing insults, calling him “Numbil”, along with the derivative nickname “Mr.” too late “. At the NATO summit, Trump said during a press conference that Powell is “terrible” and is “a very average mental person” that has “low IQ of what he does”.
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President Trump is reportedly considering making an early announcement of his successor to the Fed chair, Omeerom Powell. (Getty Images / Illustration of Photos / Getty Images)
Federal Reserve Policy makers cited economic uncertainty stemming from trade policy and potential tariff inflation as one of the main reasons for leaving the rate of federal funds in the range of 4.25% to 4.5%, where it is from the last Fed decrease in December.
Fed Held rates constant For the fourth consecutive meeting last week, it is scheduled to hold its next meeting in late July.
The president is considering naming Powell’s successor until September or October, according to a report by the magazine, which lists people familiar with the matter – some of which have suggested that the announcement appear this summer.
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Trump nominated Powell as Fed Chair in 2017, but criticized him over the years and said he would not appoint him. (Saul Lob / AFP via Ghetti / Getty pictures)
Former Fed Governor Kevin Warsh and National Economic Council director Kevin Hasset, while other opportunities include Finance Secretary Scott Benzend, former World Bank president David Malpas and Governor Fed, said the role of leading candidates.
If Trump was to announce this year’s nominee, it would give the supposed future Fed president more opportunity to signal how they would approach monetary policy decisions before the end of Powell’s term, the report said.
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President Donald Trump is reportedly considering nominating him as Fed’s president, with Secretary of Finance Scott Scott among potential candidates. (Saul Lob / AFP via Ghetti / Getty pictures)
However, monetary policy decisions are made by members of the board voting as a group, not just the chair, so it is not clear how much the Fed quasi-shadow could affect those moves.
A term of Powell Since the Fed chair is due to expire in mid -May 2026, although he may choose to continue serving as a member of the Board of Governors of the Fed, after his presidency ends.
His mandate as a member of the Board of Governors of the Fed is due to end in late January 2028.
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He declined to say whether he would stay on the Fed after his mandate, as Chair ends, saying at a recent press conference that his only focus is about tackling monetary policy movements in close.
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