According to White House economic adviser Larry Kudlow in an interview today with FOX News, the White House has no intention to remove US Federal Reserve Chief Jerome Powell.
Kudlow also stated that it appears the US central bank is going to cut interest rates. These statements are coming on the backdrop of growing concerns over the independence of the US Federal Reserve with several lawmakers in the US Congress expressing concerns over what they felt was “jawboning” by US President Donald Trump. Trump has publicly called for the Federal Reserve to lower rates in pretty forceful language.
This interview by Kudlow may just have cemented what the markets have already priced, which is an interest rate cut by the Fed in what may be the first of a few to come. US core CPI data did not show a radical increase in inflation, which may give the Fed the necessary push to make the interest rate cuts happen.
The US Dollar Index was unable to break the $97.628 price level, an area where it found historical resistance in November and December 2018 as well as in March 2019. It is presently retreating towards the ascending support trendline which connects the lows of price action from October 2018 till date.Don’t miss a beat! Follow us on Twitter.
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