Market participants have finally calmed down hoping that decision on low interest rates will remain unchanged. Meanwhile, US President Donald Trump seems to be unhappy with the current rates and keeps insisting on deeper rate cuts. Presumably, this issue was again discussed during his recent meeting with Fed Chairman Jerome Powell. According to Trump’s Twitter, the meeting was “cordial” and its outcomes were “good.” However, Powell announced that the regulator’s position would remain unchanged and would be based on “careful and balanced analysis of the situation in the economy and financial markets and should not be influenced by political considerations.” At the same time, the head of the Federal Reserve agreed that the period of tightening monetary policy was stopped on time because the regulator was acting on the circumstances rather than on someone’s demand. So, if Trump still hopes to weaken the US dollar, he will need to seek support of the US Department of Treasury. In any case, this meeting was a landmark event. Notably, both Jerome Powell and Donald Trump have been at odds over the monetary policy, and their last meeting took place back in February 2019.
