The recent comments of President Donald Trump against the president of the federal reserve, Jerome Powell, are “noise,” explains Katerina Simonetti, senior executive of the banking giant Morgan Stanley.
Simonetti, main vice-president and private wealth advisor at Morgan Stanley, minimized Trump’s attacks on Powell during an interview with CNBC “Fast Money”.
According to Simonetti, this is not the first time that Trump has slated the Fed chair.
According to Simonetti, this is not the first time that Trump has slated the Fed chair. He also did it in 2019, at the time describing Powell as a “golfer who cannot put”. The last explosion comes in the middle of Trump’s dissatisfaction with the way in which the Federal Reserve under Powell dealt with the issue of interest rates, criticizing the Central Bank chief as being “too late”.
Despite the inflation data showing a slowdown, the actions remained largely negative last week. Powell, who, according to Trump, will be gone soon, argued that he will not resign. The host of “Mad Money”, Jim Cramer, told CNBC that he sees Powell “stuck between a rock and a hard place”.
Earlier in the week, the American president posted on his social account Truth according to which “the termination of Powell cannot come quickly enough”. Trump would have planned to dismiss Powell via the United States Supreme Court.
Simonetti’s point of view is that Trump’s threats equivalent to a “noise” that is unlikely to have an immediate impact either on the markets or on the policy of the federal reserve. According to her, it is the data – not political rhetoric – which dictates what the Fed does.
Recent prices, in its opinion, have significant inflationary pressures that the Fed must analyze and take into account any decision. This is the action plan on which Powell rightly concentrates before taking measures. Given this, Simonetti says that she does not expect any rate drop in 2025, and thinks that Powell will probably serve the rest of her mandate.
The comments of the executive Morgan Stanley arise while the markets sang in the negative reactions of investors to the prices and the trade war between China and the United States.
In particular, Trump struck Powell for not having reduced interest rates, even if the European Central Bank has reduced its key deposit rate of 25 other base points.
The White House pushed the rates against China at 245% and saw the asset markets at risk falling. The actions sold on Wednesday Wednesday on Wednesday and the crypto reflected the bloodbath with Bitcoin (BTC) falling below $ 80,000.
While Bitcoin has since rebounded above $ 85,000, the downward pressure remains high. The US stock market, on the other hand, has closed down the week before Good Friday.
