Category: Federal Reserve System

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Trump’s call on Powell to lower benchmark rates has no impact on direction of foreign exchange rates.

Reuters today posted yet another call by U.S. President Donald Trump for Jerome Powell, chairman of the Federal Open Market Committee to lower the target range for the federal funds rate. The target range for the federal funds rate is currently between 4.25% and 4.50%. The federal funds rate is a weighted average of the … Continue reading Trump’s call on Powell to lower benchmark rates has no impact on direction of foreign exchange rates.

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Trump’s poorly played short term currency policy exposes Europe’s long term currency complacency …

From my trading desk … FX Street is reporting today that traders of the EUR/USD should expect continued slides in the euro. I concur in their assessment given what I saw in the charts on the NADEX from 10:00 am yesterday morning to 11:00 pm that evening. The EUR/USD went from a close of 1.16375 … Continue reading Trump’s poorly played short term currency policy exposes Europe’s long term currency complacency …

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Binary options: Did Trump’s tariff letters upset the EUR/USD?

I bought a EUR/USD contract speculating on a close above 1.1700 by 11 am this morning. At 11:00 am, the EUR/USD price at expiration was 1.17385. Tariff uncertainty dominated the media scuttlebutt as markets kept all eyes on President Trump’s letter writing campaign. According to CBS News, Mr. Trump was to send tariff increase letters … Continue reading Binary options: Did Trump’s tariff letters upset the EUR/USD?

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Legal risks: Trump is getting the weakened dollar he wants. Does he have cause for removing Powell?

12 USC Sec. 242 says the following about the eligibility, selection, and removal of a member of the Board of Governors of the Federal Reserve. Hold tight. It’s a mouthful: “The members of the Board shall be ineligible during the time they are in office and for two years thereafter to hold any office, position, … Continue reading Legal risks: Trump is getting the weakened dollar he wants. Does he have cause for removing Powell?

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Not much moved me about Chairman Powell’s testimony this week …

Jerome Powell, chairman of the Board of Governors of the Federal Reserve System wrapped up his semi-annual visit to Capitol Hill basically saying all is well with the Fed’s implementation of monetary policy. Chairman Powell assured both the House yesterday and the Senate today that the labor market was at or near maximum employment although … Continue reading Not much moved me about Chairman Powell’s testimony this week …

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Binary options: Miki Bowman speaks at 10:00 am today in the midst of intensified global risks …

Michelle Bowman, the Board of Governors of the Federal Reserve System’s vice-chair for supervision, will speak at 10:00 AM EDT at the International Journal of Central Banking conference in Prague. As vice-chair of supervision, Vice-Chair Bowman is responsible for the Board’s understanding of banks’ operations, banks’ major risks, how well banks manage these risks and … Continue reading Binary options: Miki Bowman speaks at 10:00 am today in the midst of intensified global risks …

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Nothing surprising about the Fed’s decision. More surprises in FX at 2:00 pm.

The Federal Open Market Committee decided to maintain its target range for the effective federal funds rate between 4.25% and 4.50%. The FOMC reiterated its intent to stay focused on the incoming data. This data would include information on labor market conditions, inflation pressures and expectations, as well as financial and international developments. What I … Continue reading Nothing surprising about the Fed’s decision. More surprises in FX at 2:00 pm.

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Federal Reserve: Is understanding the Fed that difficult or even useful?

The Federal Reserve as narrative promoter … While not a political organization, the Board of Governors of the Federal Reserve System as an agent of the Congress, is responsible for crafting a narrative around the soundness of the United States currency. The centerpiece of the soundness narrative is found in 12 USC 225(a) where Congress … Continue reading Federal Reserve: Is understanding the Fed that difficult or even useful?