Standard Chartered: Dismissing Powell will damage the U.S. dollar and boost safe-haven assets
Internet reports that Steven Englander, strategist at Standard Chartered Bank in New York, said that if U.S. President Trump fulfills his threat to fire Federal Reserve Chairman Powell, it will lead to rising inflation, weaken the dollar, and prompt funds to flood into the euro, yen and Swiss franc. "Attempting to remove Powell (or forcing him to resign) could lead to significant increases in inflation, the U.S. Treasury yield curve and the real risk premium in other U.S. dollar asset markets across the board," he wrote in a report dated April 21."The dollar will weaken, and this devaluation will be done not in a way that enhances competitiveness, but in a way that reduces the supply of capital flowing into the United States and exacerbates upward pressure on interest rates. The ones most likely to benefit are still safe-haven currencies such as the euro, the yen and the Swiss franc."
Disclaimer: The views in this article are from the original Creator and do not represent the views or position of Hawk Insight. The content of the article is for reference, communication and learning only, and does not constitute investment advice. If it involves copyright issues, please contact us for deletion.