Central Banks Embrace Easier Monetary Policy
The central banks spent this week embracing easier monetary policy, introducing the possibility that it happens as soon as next month.
The top priority is to push the President Donald J. Trump to hold an “extended meeting” with Chinese counterpart Xi Jinping during the next week’s G20 summit.
Meantime, economic data continued to sour with German investor confidence, New York factory gauge and Japanese exports among the worst performers as per Bloomberg.
While the Fed kept interest-rate unchangerd as expected, Chairman Jerome Powell took it as close to a rate cut as possible without executing one.
Investors immediately priced in a cut for July, expecting Central Banks easing Monetary Policy. As the fed met, the President Trump believes he has the authority to demote Powell, Powell said he plans on sticking around.
Draghi also found himself a Twitter target of Trump, who accused him of driving down the euro so may be set to wage a currency war.