The dollar is strong this morning against both the pound and the euro, perhaps benefitting from news that the US and China are rekindling their trade talks. President Trump announced yesterday that teams from both sides will begin talks prior to the G20 summit next week, and said that he had a “very good telephone conversation with President Xi of China.”
It was reported yesterday that the White House had looked into demoting the Federal Reserve Chair, Jerome Powell back in February. When asked if he’s still considering this, Trump said “let’s see what he does”, also stating that he wants a “level playing field” from the Fed. This comes ahead of a policy announcement later today.
Today Powell will make an announcement on interest rates. He is expected to acknowledge factors such as trade tensions and strains on the economy, however it is thought that there won’t be a rate cut yet. Two are expected later in the year, however.
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