President Donald Trump was asked whether he still wants to downgrade Federal Reserve Chairman Jerome Powell. He told the journalists, "Let's see what he will do."
Trump's comments come immediately before the Fed to announce its decision on interest rates.
From the White House, they have been looking for Powell's downgrade as early as February. Larry Kudlow said that at the moment, the Administration is not looking for such an opportunity. It is expected today that the Fed will not take action on interest rates, as their two-day meeting ends today. Investors, however, hope for Powell to get more convincing signals for interest rate cuts next month. Powell will hold a press conference after the decision.
This month is about to become one of the best for the stock precisely because of the assumption that the Fed will no longer raise interest rates. Investors estimate the probability of a cut rate of 80% in July.
Trump further reinforced the pressure on Powell not to raise interest rates, saying that the currencies of regions and countries with lower interest rates, such as the euro, have an advantage over the US dollar.
Trump did not forget to turn his attention and criticism to Mario Draghi after he signaled to European investors that he was open to an extra monetary stimulus that could devalue the value of the euro against the dollar in the long run.
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