What Happened to Trump and Powell?
Recently there was an important incident that caused the dollar index to collapse to touch level 98 and soared the value of precious metals such as gold. As is known, the Federal Reserve is an independent entity within the government whose task is to implement the country's monetary policy by influencing monetary and credit conditions in the economy with the aim of maximum employment absorption, stable prices, and moderate long-term interest rates.
The problem that is happening now is that Donald Trump no longer trusts Jerome Powell to lead the agency, causing internal chaos in the United States, and not only that, what happens to the American economy usually has an impact on world markets, especially currencies and commodities. Trump attacked Powell by describing him as "Mr. Late" and "a big loser" for not cutting interest rates. Trump appointed Powell to the top seat of the Federal Reserve in his first presidential term in 2017.
The attack that occurred ahead of the release of important US economic data has certainly made the market volatile, causing a surge in safe haven assets to soar to a very high level of $ 3500 per troy ounce and at the same time the US dollar plunged to its lowest level in the last few years. Although in the end Trump has denied that he will not fire Powell and his relationship with China is fine, what has happened has made history in gold prices and at least it will keep Gold in the $ 3000 area for a long time.
Source: (mrv@Newsmaker)
