Wall Street Sinks, Dollar Slides As Trump Ramps Up Fed Attacks: What's Driving Markets Monday?
Express News | Major Indexes Are Lower Amid President Trump's Criticism of Fed Chair Powell. Weakness in NVIDIA May Also Be Weighing on the Nasdaq While Continued Weakness in UnitedHealth Weighs on the Dow
The four major factors are hindering, and Powell has to "remain patient".
Persistently high inflation, declining potential for economic growth, and unusually uncertain economic prospects, coupled with Trump's potential threats to the independence of the central bank, have forced the Federal Reserve to "stand still." If the employment situation worsens dramatically, the Federal Reserve may take aggressive action, with the key indicator being the unemployment rate.
US Morning News Call | Gold Soars to Record High as Dollar Hits Multi-Year Low
After Trump took office, he continuously "withdrew from groups". Will the next one be the IMF?
Analysis suggests that if the USA withdraws from the IMF, it would be a "massive economic, financial, and political mistake." The USA would lose all influence over the organization's policies and operations. More seriously, this would significantly weaken the international status of the dollar.
The core logic behind the recent sell-off of dollar Assets: Trump is pressuring Powell.
Investors are closely evaluating whether Trump can truly fire Powell. Macquarie states that the latest catalyst for the dollar sell-off may be the pressure Powell is facing. However, the reality is that the dollar sell-off does not need further excuses. The events that have occurred over the past three months are enough to prove the persistence of the dollar sell-off, which may continue for several more months.
Bullish signals for sure, but with all that geopolitical drama, I’m side-eyeing this ‘relief.’ How confident are you this isn’t just a dead-cat bounce?
keep it up