The market asked again about Trump: ‘Can he do that?’
Such markets when the central bank can direct economic policies without political intervention, and they appreciate the data that matches the reality.
The faith has helped global shares rise to the highest record respectively this month, but it was shaken again by US President Donald Trump’s latest attack on the independence of the US Central Bank.
The equity market in Asia and the futures stock in Europe and the US is lower after Trump said he fired Federal Reserve Governor Lisa Cook because of the alleged irregularities in obtaining a mortgage loan.
Long -term Treasury dropped after the news while short -term debt rose, indicating the two of them reduced confidence in the long -term credit of the United States and increasing the guarantee that Trump would get a slaughtering of the “rocket fuel” interest rate that he had pursued.
The line chart that shows the midpoint of the targeted midpoint for federal funds and the level of implicit of the futures contract.
Thomson Reuters where the investor thought the fed headed
Fed FuDs Futures traders give prices in 83% of September interest rate cutting opportunities, according to the Fedwatch CME Group.
Trump, who was released last week from a penalty, although it was not a fraud finding in his own property transaction, said in a letter to cook that “the American people must be able to have full trust in honesty” from the regulatory policy.
Cook, whose term of office in Fed reached 2038, vowed to stay alive, said the President did not have the authority to move it. Indeed, the legality of this step is unclear, but it happened after many threats to fire the chairman who was fed by Jerome Powell.
Trump does not have the legal authority to fire the Fed seat except “for the purpose”. That is added by the term Fed Head.
Not very fortunate is the Department of Manpower who is a cashier this month after providing job data that disappoints Trump.
Apart from Fed’s dispute, Trump continues to play hit, issued a new tariff threat to countries that have digital taxes, other headaches for the European Union. Source said previously that Trump’s administration was considering imposing sanctions on the EU or member state officials responsible for implementing the Landmark BLOC Digital Services Law.
Light data calendar today. The market remains focused on quarterly income NVDA.O NVIDIA on Wednesday, a critical test of trading of scorched artificial intelligence.
Main developments that can affect the market on Tuesday:
– US Data: Durable Goods For July, Consumer Trust for August
– French consumer trust for August
-Ahead of two years of US treasuries
– Income: Bank of Montreal, Foot Locker, Kohls
– Riksbank issued the Minutes of August 19 Monetary Policy Meeting
Source: Reuters (Rocky Swift)
