empty
 
 
25.07.2021 04:34 AM
Jerome Powell may resign as early as January 2022

This image is no longer relevant

US stock markets continue to grow. Moreover, it is very difficult to say what are the reasons for its growth at this time. Whether for the most banal reason – there is more money in the US economy, so this excess money settles on the stock market. Whether for deeper fundamental reasons, such as the rapid recovery of the American economy. One way or another, the NASDAQ and S&P 500 indices on Friday did not just close with an increase. They updated their absolute highs. By the way, the macroeconomic statistics were very weak this week. On Friday, more or less significant business activity indices were published, which were not unequivocally in favor of the dollar or the American economy. It turned out that business activity in the manufacturing sector increased from 62.1 to 63.1 points in July, but at the same time, it decreased from 64.6 to 59.8 points in the service sector.

In addition, American journalists began to wonder who will take the place of Jerome Powell after his term of office ends? Recall that in January next year, Powell may leave his post if the Joe Biden administration does not decide to extend his contract for a second term. At this time, there is little chance that Powell will remain at the helm of the Fed. It is noted that there is no direct conflict between Biden and Powell, but Biden is a Democrat, and Powell is a Republican. Thus, Biden will probably want to see "his person" at the head of the central bank.

Moreover, one way or another, the president wants to have at least some influence on the Fed's monetary policy. After all, the Fed is not directly subject to the president under American laws. It is independent. Therefore, at least some influence on its activities can be exerted if the president appoints the person. Of course, this does not guarantee the result. One has only to remember how Donald Trump clashed with Powell, although they are both from the same party, and it was Trump who nominated Powell for this post in 2017. Also, American economists have already suggested who can replace Powell at the head of the Fed. It can be Lael Brainard, who has been on the Fed's monetary committee since 2014 and is famous for the softest position among all committee members. Experts note that if Brainard becomes the head of the Fed, the organization can take the most "dovish" position of all possible for a long time.

Paolo Greco,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback