In prepared remarks which were delivered today at the Jackson Hole Symposium, US Fed Chief Jerome Powell has said that the Federal Reserve will ‘act as appropriate’ and that the “Fed is working to sustain an economy that faces ‘significant risks’.”
He also said that the US economy was “in a favourable place” and that there were “no recent precedents to guide policy response to trade uncertainty.”
One person who does not seem impressed with Fed Chair Powell’s speech is US President Donald Trump. In a tweeted response to Powell’s prepared speech at the Jackson Hole Symposium, Trump lambasted the Fed, evening questioning whether Powell was a bigger enemy than Chinese Premier Xi.
“As usual, the Fed did nothing! It is incredible that they can “speak” without knowing or asking what I am doing, which will be announced shortly,” Trump tweeted.
“We have a very strong dollar and a very weak Fed…Who is our bigger enemy, Jay Powell or Chairman Xi?” Trump questioned.
With no clear cut indication as to policy direction and FOMC members interviewed today expressing divergent views on the topic, the US Dollar bore the brunt of renewed safe haven demand, with the USDCHF plunging 100 points and the USDJPY falling by 106 pips as at the time of writing this piece. Gold is also approaching the 1530 mark on the day, while WTI crude oil is down to 53.84.Don’t miss a beat! Follow us on Telegram and Twitter.