The dollar has had a relatively strong start against the pound today, benefitting from the latter’s weakness over Brexit uncertainty. Donald Trump called yesterday for the Federal Reserve base rate to ‘be reduced by at least 100 basis points, with perhaps some quantitative easing as well.’
He also insisted to reporters that America is not heading for a recession – and has placed the blame for poorly performing sectors at the door of ‘the horrendous lack of vision by Jay Powell and the Fed.’
Much attention this week will be focused on Friday’s financial meeting at Jackson Hole, where Powell will speak. The markets are already expecting future rate cuts, but any change in tone could still catch them unawares.
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