Trump’s war against Jerome Powell crushes the value of the US dollar

And – Do you think about it – the responsible person is President Donald Trump.

It has formed 0.3 % by 0.3 % of the dollar in the past 24 hours, According to the Financial Timesafter The Wall Street Journal reported Trump is considering naming an alternative to US Federal Reserve Chairman Jerome Powell just September. Powell’s duration ended in May – which leads to a called an alternative waving on the horizon in the background that will lead to a severe capacity.

This is a problem for investors, who are considered a dangerous economic expert and cautiously working independently of Trump’s political desires.

Antonio Rogerro of Convera told agents this morning, “Greenback’s transit support, born from geopolitical tensions and traditional attractiveness, has all evaporated … It has been evacuated on his head, a political catalyst: blogs in Wall Street, have been directed to the melting date.

Trump hates Powell because Powell has rejected low interest rates. In a series of posts on social truth, Trump has repeatedly insulted Powell and called him names. “A very stupid person with his head,” the last Boyle said. “We will pay the price of his incompetence for many years to come.”

Powell is in a narrow place because the inflation rate in the United States is still higher than 3 %. In fact, Trump’s tariff policy is generally inflated because it increases the price of imported goods. The goal rate of the Federal Reserve is 2 %. If Powell reduces rates (currently 4.25 %), then, in theory, it makes inflation worse.

Trump is likely to have assurances that his next choice to study the Federal Reserve will reduce interest rates. Therefore, the decline in the dollar is a sign that investors feel nervous that American monetary policy may end in the hands of a person who does not understand or care, how inflation works.

This could be an extraordinary conflict between the Federal Reserve Chairman and the rest of the Federal Open Markets Committee, which determines the target interest rate, according to UBS Dunovan’s UBS analysis this morning.

“The agreement alone prevents the federal reserve from canceling the president – the clear political appointed may be ignored by FOMC. The biggest threat to the independence of politics is a person who was not a clear political doll but was affected by Trump’s instructions,” he said.

Then there is the bond market. I mentioned ft This morning, investors flee the American bonds that have been long for a long time because they are afraid to add “one beautiful, beautiful draft law” more federal debts than the American economy can support.

The net external flows of long -term bonds amounted to $ 11 billion in Q2“The fastest fastest since the peak of the Covid-19 pandemic five years ago, as the load of the high American debt distorts the attractiveness of one of the most important markets in the world,” the paper mentioned.

The bond market supports the value of the dollar. If the prices of bonds decrease, it will follow the dollar.

“It is a much more symptom,” said Bill Campbell of DouBleline.

Arrows, at the same time, ignore all this drama. The S&P 500 seems to have another assault at its highest level ever, which is 6144.15 today. S&P 500 Futures was traded by 0.36 % at the time of writing this report.

Here is a snapshot of the procedure before the opening bell in New York:

• S & P 500 A apartment was closed at 6,092 last night.
• S & P Futures 0.36 % rose this morning.
• Stoxx Europe 600 0.23 % increased in early trading.
• Bitcoin It was above 107 thousand dollars this morning.
• Japan Nikki 225 It was 1.65 %.
• India Elegant 50 It was 1 %.
• China, Hong Kong, and South KoreaThe main indexes were marginally.