Jimmy Damon multiplies Powell despite Trump’s criticism, saying that the independent Federal Reserve means lower rates

Jimmy Damon multiplies Powell despite Trump’s criticism, saying that the independent Federal Reserve means lower rates

GettyImages-2223902445-e1754043699675 Jimmy Damon multiplies Powell despite Trump's criticism, saying that the independent Federal Reserve means lower rates

Jimmy Damon, CEO of JPMorgan Chase, doubled his support for Federal Reserve Chairman Jerome Powell – despite criticism from the Oval Office of the current Federal Reserve position.

The Federal Open Market Committee confirmed this week, led by Powell, expectations that it will not reduce the basic price of its current level of 4.25 % to 4.5 %.

Despite the fact that the President described Powell as “Hard Tead” and “Dumb” to maintain these levels, Dimon publicly supported the President of the Federal Reserve.

He also suggested that political intervention in the Federal Reserve – which some spectators see Trump’s speech – will actually work on Trump’s desires to reduce.

Talk to CNBC Yesterday, Damon said: “I have never seen a president who says he wants higher interest rates … so I will not agree with all that language, but I think Jay Powell is a professional. I think independence is important. I really think independence keeps interest rates less, if I already looks at the date of interest rates a little.

“Just reducing short -term rates does not necessarily have the effect you want at 10 years, and we must be a little careful. The president gets an opportunity to choose a new feeding chair within eight months from now.

“I think they are a kind of doing the right thing. The economy was wandering. We have been in this soft drop now for a period of four or five years. Inflation still does not reach 2 %, it is 2.5 or 2.7, yet you look at it. I think that if inflation decreases and the economy still continues to do a good job, it is possible to reduce rates soon.”

in May The veteran said in Wall Street: “There is always an idea that the Federal Reserve is fully capable and can do what he wants. They put short -term prices, but they also have to follow the facts. So it raises prices because inflation has risen, and they cannot control it until today.”

The market consensus is actually that Powell will reduce later this year. Many believe that lowering prices will come at the next FOMC meeting in September, after the Jackson Hall symposium in August, which was historically a time used to discuss major political changes.

To be said, Powell Tone At his press conference after preparing this week, the sudden analysts were the suggestion that if the Federal Reserve was not “looking for” the introductory inflation-which critics claimed is not so-It can be the primary price on the cards.

Dienon will also “wait and see”

The general tone of Powell’s messages this year was “waiting and seeing.” I earn this cautious position with the title of “It is too late” from Trump.

Damon’s comments come after “White Knight Wall Street” According to what was stated, the president met Last week to discuss the economy.

Relations between the two began to warm after Trump participated Fox News on his social media account, Social truth, earlier this year. The post not only showed that the president saw the interview, but also appreciated the support of the CEO of the largest bank in America.

But with regard to the federal reserve policy, Damon is on the side of Powell, saying: “When you look at it … there are many forces in the economy, and the definitions are one of them.

“What you really want is greater growth. This is much more important than whether inflation is heading up or a little bottom.”

With President Trump announced during the past 24 hours a new set of customs tariffs on countries that have not yet agreed from deals – Brazil will face a 50 % increase, and Canada 35 %, for example – sand is still turning under the feet of the FBI.

Damon added that although the impact of the customs tariff has so far has been “completely supervised”, there may be “some effect” from the increase in the cost that is delivered to consumers. He explained: “It is also clear that some of them are passed and others are not. We do not know yet. You may see more impact on the road. We will have to wait and see.”

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