The markets fear of Trump's dominance of the federal and the threat of the dollar

Economists and economists have said that the dollar and other US assets are exposed to more sales waves due to the threats facing the credibility of institutions in the country. US President Donald Trump now has the opportunity to choose an alternative for Adriana Kogler, a member of the Federal Reserves Council, after her resignation Friday, which creates a dynamic that can weaken the influence of the Speaker of the House Jerome Powell House. Reducing investments in US assets with Trump’s dismissal to the head of the labor statistics office, Erika Macinarv, highlighted last week the risk of reducing investors for their exposure to US assets due to threats to the independence of economic data and monetary policy. This concern has already harmed the dollar this year and has asked a few funds to move away from US bonds and stocks. Also read: The dollar concludes the best months of Trump, supported by the power of the economy, said Robert Berkvist, Seb AB in Stockholm, “Unfortunately, we see new serious efforts to focus more authority in the hands of the White House … it all justifies high risks to maintain different American assets.” Fear of politicizing US institutions comes at a time when the testimony of the slowdown in the economy. While the dollar showed indications of a cautious recovery at the beginning of last week, he fell against all the ten groups’ currencies on Friday following the issuance of a weaker US post report than expected. A greater bet on reducing interest has resulted in the working data betting of traders on facilitating monetary policies through the federal, as the expectations of the financial market indicate that reducing interest rates next month is more likely. These trends accelerated after the resignation of Kogler, who voted in favor of maintaining interest rates without changing last week, in light of Trump’s claim for an immediate reduction in the interest. Elias Haddad, a strategy in ‘Brownhes Harriman’ in London, expected a further drop in the dollar. He pointed out that Trump’s attempt to push Powell and his colleagues to reduce the interest “undermines the independence of the Federal Reserve”, while the dismissal of Macovarv “is at risk of the integrity of the US economic data.” Also read: Trump calls on the Federal Council to “take over the administration” if the interest is not reduced, while investors are preparing for Trump’s possibility of appointing a federal backup to be more likely to facilitate, at a faster pace to reduce interest at the end of the state of Powell, the resignation of Cogler concludes. Trump’s candidate can move to the Governor’s council membership to the post of President when Powell ends in May. An early announcement by the upcoming President of the Federal Reserve could create the so -called ‘Shadow President’. The idea is that investors can pay more attention to the future directions provided by the Trump candidate to follow Powell, instead of Powell himself, based on the hypothesis that he will soon take the position. ‘Bloomberg’ opinion ‘There is no positive way in which the markets can explain the news of President Trump’s dismissal to the head of the office of the work statistics, whether the US data was previously distorted as Trump was referred, or that its reliability was one of the best that could be achieved, but it is now decorated. Of the names distributed in public as candidates for the succession of Powell, the director of National Economic Council Kevin Haysit “is the worst for the US dollar because of his close connection with the president,” said Derek Halbani, head of global market research at “MUFG” in London. He added that Treasury Secretary Scott will also be seen negatively by investors because of his relationships with Trump, although to a lesser extent. A limited appetite for the dollar indicated that the former member of the Federal Reserves Council Kevin Warsh, in addition to current members Christopher, Wald and Michel Bowman, will be seen more positive because of their previous experiences in the central bank. He continued: “Until an official announcement is issued, the appetite for the return of the dollar will remain limited on Friday.” You may also be interested in: Dollar unrest brings back the glamor to emerging markets. In all cases, the federal presidential candidate is a risky event for markets during the poor liquidity in August, as investors were on vacation. Trump said on Sunday that he intended to announce two alternatives to Kougharler and McNtrifer in the coming days. A team in ‘Deutsche Bank’ led by Jim Reed said: ‘Replacing both the Federal Reserve and the head of the work statistics office can eventually affect the ease of financing dual deficit in the United States … and this can hinder the recovery of long -term mortgages, unless a major economic slowdown occurs. ‘