Federal Reserve Personnel News Further Boosts Prices
According to reports, Trump has officially nominated Stephen Miran to succeed the outgoing Federal Reserve Board member Andrea Kluger.
Stephen Miran, currently a member of the White House Council of Economic Advisers, is viewed as an ally of Trump, and it is expected that his stance on interest rates will lean dovish, supporting the maintenance or even reduction of the current high interest rate levels.
In fact, even before Stephen Miran’s nomination, several Federal Reserve officials had already expressed positive views on the possibility of an interest rate cut at the September meeting, following the weak employment data released last week and this week’s service sector index falling short of expectations.
According to the CME Group’s FedWatch tool, market expectations for a Federal Reserve rate cut in September have surged from 38% a week ago to 95%. Market focus is also shifting towards the upcoming “Jackson Hole Economic Policy Symposium” in two weeks. This conference is often regarded as a significant occasion for the Federal Reserve to release major policy signals, and this year is no exception, with the market anticipating that Jerome Powell’s keynote address will reveal more about the direction of monetary policy.
