Donald Trump thinks he can fire the president of the Federal Reserve Bank and Investors are concerned about the partial US government shutdown
When you don’t do what your boss has asked you to do, your boss starts to talk about firing you. This has alarmed the market participants today. The Federal Reserve has increased the interest rates four times this year and the Fed president, Jerome Powell is confident that the economy is in good shape. The committee thinks that two more rate hikes are on the table for 2019.
Donald Trump, president of the US, isn’t pleased with this condition at all. He has warned the Fed not to raise the interest rates several times. Investors are worried about his conversation over the weekend during which it is believed that he has talked about firing Jerome Powell. It is unusual for the US president to dictate the Federal Reserve department and it is harmful for Trump to look into the ways of firing the Chairman of the Fed. It will only shatter the market confidence further.
US futures are trading lower as investors focus on the US partial government shutdown. The disappointing fact is that there is no immediate end in sight for this resolution. Trading volume is going to remain very thin today as most of the traders are out for the holiday season. We do not expect any major moves in the market. The ongoing downtrend would continue to dominate today and markets are likely to close lower again.
Investors are wondering what the US treasury secretary has to say to the top executives from the six largest US banks over the bank. Of course, the agenda for him is to stabilise the markets going into 2019 because the current heavy losses are going to undo all the work they have done.