Let’s talk about Powell first and it looks like Trump never thinks about his mind he himself hired him at an hour of time and more shocking markets.
Ed yardeni: It is. There’s no positive done by the President, always beat Powell, unless the plan is to attack the dollar and if the dollar is aware that the dollar wants to see a dollar wanting to have a dangerous dollar.
Fed should be independent. No need to play political and Trump risks reduced fed credibility and have an effect on the bond market, in all financial market by maintaining Bash Powell.
I hope it stops, but it’s not like this. But at the same time, as President Trump knew he had never been a power in Fire Powell. And even if he did that, he had a committee, a financial policy committee, the Federal Open Market Committee that was not scary.
Where do you see Dollar index leads and what reasons can play?
Ed yardeni: The dollar index is not a weighing assessment of the index. It’s a fixed weight. And it’s basically includes the euro with the biggest weight, over 50%, yen is there, and some more money is there. And in a large size of the DXY weakness, in the dollar index, reflect the energy I need to say to the euro.
Some of these are involved in world investors who decide they are underweight euros and some money reached in Europe and as a result of the dollar, but the dollar I mean by 10% since the beginning of the year. It is very strong at the beginning of the year. It’s still strong. So, I’m not more worried as much dollars. As an international reserve, the dollar is still important. We have many capital markets here, more liquid, very safe. So, I can’t worry here about the dollar more vulnerable.
Let’s talk about the macros from the US. So, you have the core CPI that is better than expectations. We also have wholesale price numbers numbers too little better than expectation. Do you believe this is a large enough quantity currently worth a case for a rate cut from the Fed?
Ed yardeni: Not really. I mean, the CPI yesterday is hotter than expected. It’s very close to 3%, not 2% and PPI now people should know that producer producer index includes prices charging consumers. Does not include imports, unlike CPI that includes imports.
So, the fact that PPI did not change not to prove that tariffs had no effect on inflation and industrial production is stronger than expected. This is 0.1 to make 0.3 of the industry’s overall production. These numbers never suggest that the fed should have any rushes no matter what low Interest rate And we may not get a rate cut in this year because the economy continues to show its strength.
What Trump’s Tariffs have done nothing to add inflation, but keep inflation from maintaining moderate to 2%. Inflation can be well-written to about 3% in a few more months due to tariffs, without it to be exhausted by 2%.
