William J. Pulte, President of the Management Board of Fannie Mae and Freddie Mac, reported that Jerome Powell “considers resignation.” So are we one step before a strong bull market? Or on the contrary: the markets will begin to bleed again?
Jerome Powell can leave?
Surprising information appeared on the US government website: William J. Pulte said that Jerome Powell is to “consider resignation.” He referred to these reports with optimism:
I am based on reports that Jerome Powell is considering resignation. I think it will be the right direction for America, and the economy will develop.
Importantly, the statement appeared in the official press release of the Federal Residential Financing Agency (FHFA).
Everything takes place within a very important time: the next Fed meeting is approaching (it is scheduled for July 30), and President Donald Trump again appealed to reduce the federal funds from 4.25%-4.5%to as much as 1.25%-1.5%. In addition, he has been persistently attacking Powell for conducting too careful politics.
What does this mean?
If Powell actually leaves, he will be replaced by someone he appoints Trump, and this means conducting monetary policy closer to the White House, i.e. cutting interest rates. Currently, according to the Fed Watch Tool data, the market is not valued in this field of revolution. The one with two percent foot cuts is still the best priced scenario. by the end of the year, which would reduce the level of foot to 3.75-4%.
Economists warn, however, that such a drastic change that Trump wants can shake investors’ trust in the American dollar, and at the same time raise gold prices and inflation expectations. With all this, it could positively affect the asset markets, because it is high percentage rates. They have been suppressing greater increases for months in Ethher and Altcoins.
The Federal Reserve has not yet issued an official commentary on Powell’s potential resignation. However, the very fact that the said message was published on the government’s website means that resignation can actually take place and this is already in the near future.
Currently, one bitcoin costs $ 117,884.
