Dollar, Treasury prices tumble after report Trump to fire Fed’s Powell
London/New York (Reuters -Bloomberg’s unidentified White House official, referring to a White House official, fell sharply on Wednesday after Bloomberg, reported that US President Donald Trump will soon shoot Federal Reserve President Jerome Powell.
The dollar fell to 0.7% against a basket of large currencies in terms of moments after the news was shot, while the price -sensitive areas of the market, such as US regional banking shares, fell and gold was collected.
Longer treasures were sold and 5.06%of the 30 -year bond increased by about 5 basis points per day. Previously, 5 BPS fell on Tuesday and previously traded by 4.97%.
Investors were in front of the possibility that Powell would be removed from his post in May next May, because Trump criticized him again and again because he did not reduce us quickly.
Comments:
Francesco Pesole, FX Strategist, ING, London:
“Today, if we get a title about Powell (lifting), we are looking at much larger sales in the dollar. Federal reserve independence is the status of the US as the number 1 reserve currency.”
“Considering the results of the removal of a chair, the reaction is still relatively contained. The Euro/Dollar is $ 1.17, and the results should be higher. The results are large. Markets still do not fully pricing. If Powell is removed today, then the deductions in September.”
Chris Beauchamp, Head Market Analyst, Ig, London:
“The news put the dollar tightly on the back feet, but dragged the stocks lower. The separation of the FED President would leave the independence of the Central Bank in question. (Trump’s) tax and the expenditure bill and the last success of the ceasefire in the Middle East seems likely to act.”
He said: “Now we will see if the bond market awake will put the US in its landscapes again. Such a dramatic move shows that this time it does not support the tariffs, especially with the stocks in record peaks.”
Lee Hardman, Senior Money Analyst, Mufg, London:
“If this (fires Trump Powell), it will harm the investor’s confidence in the dollar, so we start to see heavy sales, and it may be more extended if it does.
“It is not clear whether Trump has the power to ignite the power of Powell, so we would expect to see a legal challenge very quickly, but even if it was rejected, it will be long -lasting and strengthening our decline on the dollar.”
(Reporting by EMEA and US Breaking News teams; compiled by Amanda Cooper;
