Amid Trump's Renewed Pressure on the Fed, Powell's Speech Tonight Takes Center Stage

July 1st: The Federal Reserve Chairman Powell is scheduled to deliver a speech at the ECB Forum on Central Banking on Tuesday. In the meantime, the White House is intensifying its efforts to formulate a plan to replace Powell, and the internal divisions within the Fed are becoming increasingly difficult to overlook. US Treasury Secretary Yellen stated on Monday that someone might be in place to succeed Powell when his term comes to an end. She also mentioned that the US government may nominate someone to fill a crucial Fed Board seat that will be vacant in January of next year, and this individual may potentially take over as the chair subsequently. Shortly after Yellen's remarks, Trump intensified his attacks on Powell and the Fed, accusing them of maintaining interest rates too high, resulting in the US losing "trillions of dollars," and stating that the Fed "should be ashamed of themselves." Meanwhile, the internal divisions within the Fed are expanding. Two officials appointed by Trump, Wall and Bowman, are advocating for a rate cut as early as July. This rift is having a negative impact on the fragile economy. The June nonfarm payrolls report, which is scheduled to be released on Thursday, may further complicate the outlook. (FX168)