• Trump’s attack on the Fed crossed the "red line" and could weaken the dollar

Notícias do Mercado

21 agosto 2018

Trump’s attack on the Fed crossed the "red line" and could weaken the dollar

The dollar fell and may continue to weaken after President Donald Trump said he does not agree with the Fed's decision to raise interest rates, and that the Fed should do "what's good for the country."

The latest criticism of President Donald Trump, in an interview with Reuters, came four days before the long-awaited speech of Fed Chairman Jerome Powell on Friday at the annual Jackson Hole Symposium.

"The market will react to the Tram, not so much on the idea that the Fed will change its opinion on monetary policy, how much the dollar is due to the idea of ​​the president's assault on the Fed," said Mark Chandler, head of the currency exchange strategy at Brown Browns Harriman. "I would say that the dollar is already corrected, but Trump's comments will probably prevent him from continuing to grow."

The dollar index touched a minimum of 95.78, having decreased by 0.6%. Treasury yields were also at the lows of the day, and stocks lost some of their profits before closing in the green zone. The yield on 10-year bonds was 2.82%.

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