In the near term, we expect Donald Trump to announce his decision for the new Federal Reserve chairman. Jerome Powell is currently a favorite, but many of the market players are ready to meet any surprises from the president if he does not meet the expectations and announced Kevin Warsh or John Taylor as the new Fed Governor.
Powell is the richest member of the Fed at the moment, and has always been the centerpiece of voting on the Central Bank board. But he has expressed a desire to return some pre-crisis rules that will definitely satisfy Trump's wishes. Powell is also highly favored by Secretary of Finance Steven Mnuchin. Of all the finalists, Powell is considered to be the one who will encounter the least opposition from the Senate.
We expect the biggest influence of Trump's decision on the US dollar, not excluding sudden movements in both directions.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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