Will Fed change help depose King Dollar?
Nov 22 (Reuters) - Who will Donald Trump pick to be Federal Reserve Chair when Jerome Powell's term ends in May 2026? The answer to that question is one which the foreign exchange market would love to know, given its potentially material impact on the dollar.
If Trump's choice to succeed Powell is perceived to be potentially too malleable to the incoming president's interest rate wishes, it might help to turn the bullish USD tide, if events haven't done so already.
Powell is expected to serve the last 18 months of his term, having said on Nov. 7 that he can't be forced to quit.
Trump has floated the idea of appointing Kevin Warsh as U.S. Treasury Secretary on the understanding that he could later be Federal Reserve Chair, according to a Wall Street Journal report.
The USD index reached a new 13-month peak of 107.21 on Friday, as it added to gains spurred by Trump's presidential election victory.
Related comments: nL1N3ML0AO nL1N3MQ08W
For more click on FXBUZ
(Robert Howard is a Reuters market analyst. The views expressed are his own)
</body></html>Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
