Donald Trump has criticised the us Central Bank is once again sharp and urged a reduction in interest rates. The U.S. President is playing a dangerous game with the Fed. It runs the risk to lose confidence in the markets and to be as the extended Arm of Trumps perceived.
The interest rate level is too high, the Central bankers have no idea of the monetary policy was ridiculous and to blame for the current strength of the Dollar: The only Problem is, the American economy, was the Fed, she was their biggest threat. U.S. President Donald Trump as we know him: crazy opinion. Also the Chairman of the US Central Bank, the Fed, Jerome Powell, when he again personally: "He is my choice and I don't agree with him at all," he said in a recent TV Interview with the transmitter ABC.
President of the Federal Reserve's Jerome Powell: A need to ensure the Job make
in view of this massive broadsides from the White house, it is hardly surprising that the actors in the financial markets. Finally, the independence of Central banks from political participation is a high Good, to defend it. The Central banks should make their decisions solely according to economic criteria - so in any case, the ideal.Trump-rants with side effects
This has consequences, because the markets react sensitively to the permanent Interfere in monetary policy. And the Fed, as well, because you will be eager to do everything they can to avoid the harmful impression, you could of Trumps rants and bustle. "The pressure of the US President, Trump the Central bankers life easier. Finally, it should not look as if the Fed were to lower interest rates on the request of the President," comments Milan Cutkovic, market observers when a broker AxiTrader.
Christian Henke from the broker house IG suspected, it would even be possible, that the permanent interest rate reduction claims Trumps the opposite effect, and the reduction is moved: "That the suspicion of interference on the part of the US government could be avoided." About the lack of voltage can be given the current interest rate decision, so really no complaints.
Stefan Kreuzkamp, the Chief Investment Officer at the Fund company DWS notes Anyway: "whether the guardian of the currency, to follow the Urging of Trumps to lower interest rates or not, their Actions will not be free from the suspicion of being politically motivated."
B5 stock exchange from 11.6: Trump vs. US Central Bank
19.06.2019 10:35 PM
We offer this Audio in the following formats for Download:- mp3
note: , If the audio file is not saved when you Click automatically, you can select click with the right mouse button and "save target as...".Two or three times down?
is not, However, be expected according to the majority of experts and Fed observers with a rate cut this Wednesday, it is more likely to be assumed to be in July. "At the latest in September, the Fed is likely to act. The interest rate for others to follow will be the turn," said Commerzbank Economist Bernd pastures Steiner. Meanwhile, it is speculated that for this year overall, down two steps, even three interest rate cuts is sometimes mentioned.
interest rate comparison Euro area versus the USA
In the past year, the Central Bank had raised the key interest rate four Times, most recently in December, on the margin of 2.25 percent to 2.5 percent. The excellent economic situation, the interest rate made the increases necessary. At the moment, the economy seems to be cooling down a bit, also home-made problems such as the trade dispute with China to apply more and more as a stress factor.The economy is too strong for a rate cut
Stefan Kreuzkamp, the DWS takes a look at the economic facts: "if you Look at the dual mandate of the Fed, namely full employment and ensure price stability, is at least from the first target there is currently no need for action. The unemployment rate is 3.6 per cent to a record low."
In price stability, there is a discrepancy between the current Figures and expectations. "While the U.S. trended inflation figures this year, slightly weaker, but commutes to the core inflation rate has been around for about three years, between 1.7 and 2.3 percent. However, inflation expectations have fallen within the last two months by almost half a percentage point."
His colleague, Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, puts it: "From our point of view, the economic and financial conditions are too strong for a rate cut, although inflation expectations are below the target corridor."
boerse eight from the 12.06.2019: trust in the Fed a high Well
Twitter page from Donald Trump: Here's always something going on
The US Central Bank is put in a Dilemma, the conclusion of analysts of the DZ Bank is. "It is not in the interest of Central bankers to choke any reduction in the base rate fantasy in the Bud. This could lead to further fears of a recession the market up." The Fed will not want to also inspire the expectations of rapid and bold rate cuts. "As a result, the balancing act must be able to open the door for a possible more expansionary monetary policy, without sounding too concerned," reads the conclusion of the experts.
so Far, no President has attacked the independence of the U.S. Central Bank's so much as Donald Trump. It is also a further factor that is considered. But the fact that you have to currently throw a sharp look at trump's Twitter Account, as well as on the economic data, has used the financial world for a long time.source: boerse.ard.de