Maybe Lou Dobbs changed his mind, or maybe Trump held another straw poll, or maybe he just woke up on the “Powell side” of the bed this morning, but according to sources who spoke to Bloomberg, Jerome is going to get the job:
- TRUMP IS SAID TO LEAN TOWARD POWELL AS NEXT FED CHAIR
- TWO PEOPLE FAMILIAR W/TRUMP FED DISCUSSIONS SPEAK TO BLOOMBERG
Predictably, that pushed yields and the dollar lower immediately as the market is now going to try and price out Taylor and whatever “hawkishness” would presumably come with him and his rule:
Of course sources also told Bloomberg that “the decision isn’t yet final” and that “Trump could change his mind at any time.”
Yes, thank you, we know.
The last two Fed chairs have been awful. Obama’s dove Powell would be strike 3 and out. But what else should you expect from Trump, maybe Neil Kashkari?
Last week, I posted a short-term target of 23,700 for the Dow and 30K+ ultimately. Might have to revise that to about 33K for an intermediate target and 50-55K for the terminal move. That’s no reflection of confidence in Powell, Kashkari or the US; rather just an expectation of the currency destruction they could cause.
Watching Lou Dobbs may turn out to be a major risk factor for early dementia. I don’t recommend it.