According to the Wall Street Journal, U.S. President Donald Trump is about to appoint Jerome Powell to head the U.S. Federal Reserve (Fed) to replace Janet Yellen. Powell is a Republican, appointed Fed governor by former President Barrack Obama in 2012, and has a reputation as a pragmatic, non-ideological decision-maker. Although he did not play a key role in Yellen’s monetary policy, Powell nevertheless supported a more cautious approach toward monetary tightening measures. The U.S. dollar has already reacted to the news, dipping slightly against the loonie late in the day yesterday. The decision should be made official today.
Yesterday afternoon saw another speech by Bank of Canada (BoC) Governor Stephen Poloz, this time to the Senate Banking Committee. Poloz’s remarks were essentially the same as what he had said the previous day, reiterating that the BoC was determined to be cautious regarding future key rate increases. The fragile job market remains a major risk and could contribute to lower inflation.
The Bank of England is expected to increase its key rate for the first time in a decade this morning.
Yusuf Kocagozli
Range of the day: 1.2805 – 1.2915