Al -Shark Al -Avsat Newspaper -Cina President: Customs and trade wars can harm the global economy
Trump, withdrawn from his threats: I don’t want to dismiss the “Federal Reserve” president
On Tuesday, US President Donald Trump withdrew his threats to dismiss the head of the Federal Reserve Council, the head of the Federal Reserve Council, first, after the growing criticism of his lack of interest rates.
Trump told reporters at the oval office on Tuesday. I would like to see him more active in applying his idea to reduce interest rates. ”
This tranquility immediately welcomed Wall Street; Futures for stock indicators increased by about 2 percent with the launch of trading re -umption on Tuesday evening. After Trump repeatedly attacked Powell during the Easter holiday, stocks, bonds and dollars fell on Monday because he did not cut interest rates since he took office in January.
At a similar press conference on Tuesday, Trump expressed its optimism that the trade agreement with China would lead to “big” customs duties, which also strengthened investors’ confidence. He said that the agreement would “significantly reduce” customs duties on Chinese goods; The final agreement pointed out that it was not the “soon” of the current customs duties. But he said he was “not zero.”
Trump’s repeated criticism of his customs duties, the criticism of the Powell and the Federal Reserve Bank has recently led to the intensification of the sale of American assets, including the US Treasury and the Dollar.
Trump’s criticisms often accompanied by threatening statements like his post on social media last week, in which the Federal Reserve Bank’s presidency was “unable to do so quickly”, with more personal sarcasm as Powell describes him as a “great defeat”. These threats have caused the anxiety of economic markets, which is the independence of the “Federal Reserve”, which is the most important, the basic pillar of global economic stability to increase its credibility as the most effective central bank in the world.
Although Trump seems to have set aside these threats at the present time, his criticism of the federal interest rate policy is still equal to clarity. “We believe this is the ideal time to reduce the interest rate, and rather than delay, we want to start at the beginning or the date specified,” Trump said.
Old enmity
The history of Trump’s differences with Powell dates back to the first period of the Republican Party at the White House. Trump Powell was promoted to the presidency of the Federal Reserve Council Member Central Bank, but he was quickly angry due to the continuous increase in interest rates under the supervision of Powell. Trump has publicly thought about the removal of Powell, but his advisers eventually praised him. It is not clear whether Trump has the necessary authority. Powell insisted that it would not allow the 1913 “Federal Reserve” Act founded by the Central Bank.
Meanwhile, Trump said he would be “quickly” if he wanted to beat Powell. The law dictates that the president’s seven “Federal Reserves” will not be dismissed, and the Senate has been confirmed for a period of 14 years, except for “good cause”, and not a dispute over policies.
However, it neglects to mention the limitations of law, which describes it to the 4 -year “Federal Reserve” period, one of the seven conservatives.
Trump’s scandalous speech is currently similar to the legal cases that are currently pending, he has been removed from the other independent federal council and agencies. “Federal Reserve” circles closely examine these problems as to whether Trump has the authority to dismiss the “Federal Reserve” which has always adopted their ability to follow monetary policy from political influence.
“Federal Reserve” reduced interest rates by 4.25 percent and 4.50 percent at the end of last year, but he did not change it at the two policy meetings since Trump returned to the White House. The next meeting of the Federal Reserve Council will be held two weeks later to determine interest rates. The federal reserve policy manufacturers can restore inflation imposed by Trump since the beginning of February, which has already found more trouble in returning their 2 percent target.
At the same time, if customs duties slow down and increase unemployment, policy designers are afraid that their goal will intensify their goal.
The result is still looking at the “waiting and NTIC hitting” position on further interest rate cuts, although most policy designers are still looking at some of the lower interest rates later this year.
Futures of interest rates have been reduced to reduce their bets to reduce the “Federal Reserve” policy after Trump’s advertisements, and they are now expecting 3 discounts on interest rates by the end of the year, compared to 4 in the past 4.
So far, the standards of the “concrete data” of the American economy, such as employment reports and retail sales, have shown flexibility, but families and companies’ opinion collections have declined rapidly with confidence. With the onset of the effects of customs duties, economists are now unanimous with the losses to deteriorate from now on.
On Tuesday, the International Monetary Fund has reduced its estimate for the growth of the United States and world this year and the main reason for this reduction in imposing customs duties.
