The investor of billionaire’s hedge funds Ray Dalio, author of the new book How Country Go Broke, discusses President Trumps Trade Policies and the value of the US dollar.
The US dollar had a day of volatile negotiations on Monday following the United States which joined Israel to attack Iranian nuclear installations.
The dollar has strengthened during the Monday morning negotiation session, increasing up to 0.71% as investors clashed towards the greenback, reaching its highest level since May, according to the WSJ dollar index, which measures the dollar compared to a basket of currencies.
As the afternoon approaches, the dollar abandoned these gains and dropped by more than 0.3% in the middle of the afternoon trade.
The dollar slide occurred after comments from the Federal Reserve Michelle Bowman suggest that the central bank could reduce interest rates from its meeting next month.
The federal reserve leaves the key interest rate unchanged for the fourth consecutive meeting
The dollar fluctuated following American strikes on Iran as well as comments from the Federal Reserve. (Getty Images / Photo Illustration / Getty Images)
The federal reserve last week has held its objective of a federal reference rate unchanged to a range of 4.25% to 4.5%, citing economic uncertainty in the midst of imminent prices which could reach consumer prices more widely.
The president of the FED, Jerome Powell, noted that the labor market is roughly a maximum or close job and that inflation is somewhat higher than the target target of the Fed, leaving the central bank in a position to act if the economic conditions deteriorate.
Bowman spoke during a research conference in Prague, in the Czech Republic, and said that the Central Bank would have the opportunity to review more data on inflation and the labor market before their next meeting, which could open the door to the reduction of first rate in 2025.
Frustrated Trump suggests that “maybe” he will have to change his mind on dismissal ”, the president of the Fed, Jerome Powell,
The governor of the federal reserve, Michelle Bowman, said that she could see interest rate reductions occurring next month if economic data support such a decision. (Photographer: Al Drago / Bloomberg via Getty Images / Getty Images)
“If the upcoming data shows that inflation continues to evolve favorably, the upward pressures remaining limited to the prices of goods, or if we see signs that softer expenses spread under lower labor conditions should be approached in our political discussions and reflected in our deliberations,” said Bowman.
“If inflation pressures remain contained, I would support the drop in the policy rate as soon as our next meeting in order to bring it closer to its neutral framework and maintain a healthy labor market,” said Bowman.
His comments come after another governor of the Fed, Christopher Waller, said last week that the Fed could reduce rates from July.
Fed Governor Breaks Ranks with Powell, the signal rate decreases could start next month
President Donald Trump appointed Jerome Powell as president of the Fed in 2017, although he strongly criticized the Fed’s approach to monetary policy. (Saul Loeb / AFP via Getty Images / Getty Images)
The Fed lowered the interest rates of 100 base points last year, including a drop of 50 points in September, followed by a pair of 25 points discounts in November and December.
President Donald Trump repeatedly criticized the Central Bank and Powell for refusing to reduce interest rates, appellant “Mr. Too late ”, among other insults.
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Trump sometimes suggested that he could try to withdraw Powell from his role, although federal law can prevent such a decision.
