Euro surges as ECB's Draghi does not mention currency strength

Lloyd Doyle
August 28, 2017

Trump has said he's considering reappointing the 71-year-old Yellen as central bank chair, although economists polled by Bloomberg do not expect that she'll get the nod.

Trump has publicly hinted that there is a distinct possibility that when Yellen's tenure as Federal Reserve Chair ends in February 2018, he will not be reappointing Yellen to the position.

Yellen correctly and courageously rejects the deconstruction of key financial safeguards supported by many on Trump's team of Wall Street-sourced bank regulators. Investors had been awaiting her speech for any signals about what the Fed might do when it meets next month. Yellen, 71, is Jewish, and her image was included in a Trump campaign ad shortly before the election criticized as anti-Semitic.

Yellen, in a speech defending tough banking regulations enacted after the 2008 financial crisis, did not address whether the Fed would stick with its plan to carry out a third interest rate hike in 2017 - a move increasingly in doubt.

At the same time, tensions might be arising between Cohn and Trump. Cohn said he ultimately chose not to leave because of the duty he feels to his job.

NEW YORK, Aug 25 (Reuters) - World stock markets advanced while the US dollar weakened on Friday after Federal Reserve Chair Janet Yellen omitted monetary policy in a much-anticipated speech that left the possibility of a USA interest rate hike in December open to interpretation.

The U.S. dollar is clawing back some of its early morning losses after slipping against most major rivals Friday, as investors prepared to watch for what Federal Reserve Chairwoman Janet Yellen may say about what's next for monetary policy.

In spite of the efforts of the american government to help the banks during the last recession, Ms. Yellen recalled that nearly nine million Americans had lost their jobs and millions more had lost their homes.

"The steps to improve the capital positions of banks promptly and significantly following the crisis. have resulted in a return of lending growth and profitability among United States banks more quickly than among their global peers", Ms Yellen said.

"The lack of any comment on the stronger euro encouraged the market to take it higher, adding to the gains seen after Yellen's speech", Jason Wong, currency strategist at Bank of New Zealand, said in a note.

Ms. Yellen has been open to change the current regulatory context, in particular by easing the rules that relate to the smaller banks.

She said the reforms put in place after the 2007-2009 financial crisis had strengthened the financial system, without impeding economic growth.

A study by the Institute of Taxation and Economic Policy concluded that Trump's recent tax proposal would provide 48.8 percent of the benefits to the one-half of 1 percent of Americans who earn more than $1 million a year.

President Trump and congressional Republicans say numerous Obama-era rules go too far in choking off credit and burdening firms with unnecessary compliance.

In January previous year the exchange rate was 75p.

Other reports by Iphone Fresh

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