Trump's pressure on Powell is the latest motivation for selling US assets

The wave of the sale of US assets gained momentum on Monday, as President Donald Trump is still thinking about the possibility of dismissing Federal Reserve President Jerome Powell. The dollar has fallen and future contracts for US equities and bonds have dropped for ten years, with investors assessing the risk of dismissal of Powell and its effects for the largest economy in the world. On Friday, after the statements of the National Economic Council, the sales operations increased Kevin Haysit that Trump studied the matter after a report said the president was studying such a step. Powell’s possibility is a new blow to US origin, after raising the definitions of the high or high trade imposed by Washington for concerns about economic stagnation, and strengthened the doubts about the position of US treasury effects as a preferred security. Trump said the decline in the value of the currency will make American products more competitive, which exacerbates pressure on the dollar. Warnings about the loss of the dollar, Christopher Wong, a strategy at the overseas team: “Honestly, the dismissal of Powell seems to be difficult to believe.” Skepticism about the credibility of the Federal Reserve leads to a major undermining of the dollar. ‘The level since January 2024. In the weakness of trade as a result of the holiday, the yen has risen to its highest level since September, while the euro jumped to the highest level in more than three years. Win Dun, the global head of the market strategy at Brown Brawman and Carriman & Co in a research note “We believe that the weakness of the dollar will continue.” It should be treated seriously and in a very negative view with the mere recognition that the issue of his discharge (Powell) is being studied. For commodities that hedge funds are now least optimistic about the dollar since October. Central banks are very valuable, and it is not something we can always consider present or guaranteed, and it is difficult to restore them if they are lost. “And his threats against Powell do not increase the confidence of foreign investors in US assets, but I still think that changes or updates in customs duties policy are the main reason for the movements in the markets.” What does “Bloomberg experts” do say that investors also raise concerns because of the independence of the central bank. Through the news distributed in the media, it is possible in the interests of Powell. And: “And if correct, it is also assumed that it will be reflected to ensure Powell’s stability in his position.” A comprehensive sale of US assets, the sale was not limited to the US dollar on Monday, as future contracts associated with US stock indicators fell by 1%, while US treasury bonds increased by two basis points for ten years (0.02%). The revenue curve on the US Treasury effects has increased by the slope (the revenue of the short -term effects has increased more than long -term), as the effects for two years exceeded the effects of other deadlines, amid speculation that the discharge of the federal reserve will pave the way for more interest rate. The larger void since 1992, the possibility of more interest rate discount has led to a sharp drop in the yield curve. The difference in the returns demanded by investors to own US treasury bonds has increased for 30 years compared to effects for two years, over nine consecutive weeks- something that has only been repeated once since Bloomberg began in 1992. Long -term mortgages have also been subjected to the yield curve of pressure, amid speculation that the hedge funds liquidate their financial transactions. Meanwhile, experts analyzing the market movement in Wall Street have increased as Trump’s commercial war weakened expectations about the growth of the US economy and the profits of the companies. Last week, streets in the city group reduced their expectations for US shares and pointed out that the idea of ​​the ‘US exception’ (meaning the superiority of the United States will continue to face challenges or problems. Showing? In the midst of the current unrest, the participants in the Market or Trump Jerome Powell can really reject his post. abuse of power. This legal controversy could eventually affect or Trump has the power to reject Powell. The dollar is under constant pressure, regardless of the result, some believe that the possibility of the dismissal of Powell is only the youngest in a series of reasons leading to reducing investment in the US dollar. ‘Macquarie’ said in Singapore: ‘The latest motivation for selling the dollar may be to push on Powell, but reality needs no extra justifications to sell the US dollar,’ says Gareth Perry, Macquarie’s strategic expert in Singapore. And “What has happened over the past three months is a sufficient justification to continue selling the US dollar, and maybe a few more months.”