Warsh will take the reins at the Fed. Date set
Kevin Warsh will be sworn in as the new Chair of the Federal Reserve this Friday, according to information provided by a White House representative in an interview with CNBC.
The candidate chosen by Donald Trump will replace Jerome a Powell, whose term ended last Friday.
Also read: Dollar and euro rates before the change. Will Warsh hike rates? Expert: "A straight path to disaster"
"After taking office, the 56‑year‑old Warsh will become the 11th Chair in the modern era, and also the wealthiest person ever to hold the position, according to financial data he submitted before approval," CNBC reports.
"He will have to divest a significant portion of his portfolio to comply with the strict new regulations adopted for Fed officials," added the outlet.
Warsh is expected to advocate for rate cuts, largely due to pressure from Donald Trump for rapid monetary easing.
The situation is further complicated by the ongoing stalemate between the United States and Iran, and the lack of a resolution on opening the Strait of Hormuz, which heightens the risk of disruptions in global energy markets and intensifies concerns about a resurgence of inflationary pressure,
In April, the core CPI accelerated to 2,8% year‑on‑year from 2.6% in March.
Meanwhile, CPI inflation rose from 3.3% to 3,8% year‑on‑year.
Daniel Kostecki, chief financial markets analyst at CMC Markets Poland, provided commentary on the matter in an interview with FXMAG.
The FOMC chair change will occur between meetings; the next decision meeting is on 16-17 June.
Nonetheless, no rate changes are expected at that meeting, especially since inflation in the U.S. is likely to be higher in May than in April.
The expert also outlined the currency market changes investors should expect this month.
Regarding potential volatility ranges by month‑end, we can talk about a range for EUR/USD of 1,1570-1,1830, and the USD/PLN rate could likely move within the range from 3,56 to 3,67.
These calculations were based on the foreign‑exchange options market and the highest probability corridor for the rate and volatility during that period — the expert summarized.
Source: Trading Economics.
Also read: Will the dollar surprise again? Expert issued a forecast for USD/PLN and EUR/USD. "I find it hard to believe there will be no more fires"
See also: The dollar on a long path to 4 PLN? Expert issued forecasts for USD/PLN and EUR/USD. "The dollar could gain"
Dollar and euro rates on Tuesday, May 19
The dollar to zloty rate on Tuesday, May 19 is at 3,64 PLN.
Chart. Dollar to zloty rate (USD/PLN)
Source: TradingView.
The euro to dollar rate reaches 1,16 USD.
Chart. Euro to dollar rate (EUR/USD)
Source: TradingView.
Also read: Dollar before a breakout? Expert: "Capital will flow back to USD"
See also: Dollar before a "nervous and dynamic" move, euro waiting to fall? Expert issued a forecast for USD/PLN and EUR/USD
Source: CNBC.
