empty
24.04.2025 09:59 AM
Powell Can Sleep Soundly

Markets responded with gains, and the US dollar strengthened against the euro and other risk assets after US President Donald Trump said he had no intention of firing Federal Reserve Chairman Jerome Powell, despite his disappointment that the central bank isn't taking more aggressive action to cut interest rates. "Never," Trump told reporters. "No, I'm not going to fire him. I just wish he would be a little more aggressive in his thinking about lowering interest rates."

This image is no longer relevant

Kevin Hassett, Director of the National Economic Council, told reporters last Friday that Trump had been reviewing whether he could dismiss Powell, following a series of social media posts and public comments criticizing the Fed. Last week, the president launched another tirade against Powell, right before the European Central Bank cut its key rate by a quarter point to 2.25% — about half the Fed's current rate of 4.25–4.5%.

Trump has repeatedly complained that the Fed is not cutting interest rates quickly enough, repeating his criticism during a recent speech and insisting that the market turmoil surrounding his comments was exaggerated. "We believe now is the time to cut rates, and we'd like the Fed Chair to do that in a timely manner — not too late," Trump said.

For reference, Powell and his colleagues have so far kept interest rates unchanged after cutting them by a full percentage point in the final months of 2024. Policymakers are waiting to see how the economy responds to the Trump administration's latest moves on tariffs, tax reforms, deregulation, and immigration.

Most Fed officials have stated that current policy is in a good place and that the central bank needs to maintain some pressure to keep inflation in check, which has remained above the 2% target for four years.

The US economy grew at a healthy 2.8% last year, but economists now believe tariffs will slow growth by the end of 2025. While the Fed traditionally cuts rates to support the economy in such cases, Powell and some of his colleagues have indicated that the central bank may have to prioritize the inflation side of its dual mandate, especially as tariffs could once again spur inflation.

In addition, the US dollar showed increased stability against a range of other currencies, as the White House said the administration was making progress in negotiations on trade deals aimed at reducing tariffs announced earlier this month.

Current EUR/USD Technical Picture

Buyers must focus on reclaiming the 1.1360 level. Only then will a test of 1.1430 become possible. From there, the path may open toward 1.1500, although reaching it without the support of large market players could be quite difficult. The furthest target is the 1.1570 high. If the instrument declines, I expect major buyer activity only near 1.1280. If there's no interest there, it would be prudent to wait for a new low around 1.1210 — or consider entering long from 1.1150.

Current GBP/USD Technical Picture

Pound buyers need to reclaim the nearest resistance at 1.3300. Only then will it be possible to aim for 1.3350, a level that has proven difficult to break. The furthest target is the 1.3416 level. In case of a decline, bears will attempt to regain control over 1.3240. If they succeed, a break of that range would deal a serious blow to the bulls and push GBP/USD down to the 1.3205 low, with a possible move toward 1.3165.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

AUD/JPY. Analysis and Forecast

The AUD/JPY pair is regaining positive momentum after a modest pullback the previous day. However, spot prices remain confined within a multi-day range due to mixed fundamental signals, trading near

Irina Yanina 14:39 2025-06-20 UTC+2

USD/CHF: The Pair Struggles to Gain Momentum Amid Conflicting Forces

At present, USD/CHF shows no clear intraday direction and fluctuates within a narrow range just above the 0.8155 level, reflecting market uncertainty during the European session. The Swiss franc

Irina Yanina 14:36 2025-06-20 UTC+2

The Euro Will Retain Its Strength and Investor Interest

During her speech, IMF Managing Director Kristalina Georgieva stated that she sees the potential for the euro to play a broader role globally.Her remarks came amid growing geopolitical instability

Jakub Novak 11:25 2025-06-20 UTC+2

Euro Slightly Rises After Lagarde's Speech

The euro saw a modest recovery after European Central Bank President Christine Lagarde stated that expanding trade within the region could help offset losses resulting from global fragmentation. Her optimistic

Jakub Novak 11:10 2025-06-20 UTC+2

Donald Trump – A Mastermind of Geopolitical Uncertainty (A Potential Correction in Oil and Gold Prices)

Six months into Donald Trump's presidency, it seems he has already thoroughly exhausted the world with his "brilliant" initiatives, groundbreaking actions aimed at making America great again, and his vivid

Pati Gani 09:49 2025-06-20 UTC+2

The Market Tries to Extinguish the Fire

Markets are digesting Donald Trump's announcement that a decision on U.S. strikes against Iran will be made within two weeks. The White House could have acted at any moment

Marek Petkovich 09:01 2025-06-20 UTC+2

What to Pay Attention to on June 20? A Breakdown of Fundamental Events for Beginners

There are very few macroeconomic reports scheduled for Friday. The only report of the day will be the UK retail sales report. No economic data will be released today

Paolo Greco 07:45 2025-06-20 UTC+2

GBP/USD Overview – June 20: The Bank of England Didn't Surprise

The GBP/USD currency pair traded relatively calmly on Thursday, given the fundamental backdrop available to the market. On Wednesday evening, the Federal Reserve announced the results of its latest meeting

Paolo Greco 07:16 2025-06-20 UTC+2

EUR/USD Overview – June 20: Summing Up the Fed Meeting

The EUR/USD currency pair traded relatively calmly on Wednesday and Thursday. Recall that the results of the latest 2025 Federal Reserve meeting were announced on Wednesday evening, but we didn't

Paolo Greco 07:16 2025-06-20 UTC+2

USD/JPY. Analysis and Forecast

The Japanese yen is showing weakness against the stronger U.S. dollar, with the USD/JPY pair reaching a new monthly high. This rise in the dollar against the yen is mainly

Irina Yanina 20:12 2025-06-19 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.