Donald Trump renews effort to fire Federal Reserve governor Lisa Cook
US president has clashed with Federal Reserve members over his bid to rapidly slash interest rates despite inflation.
ABN AMRO's Chief Economist, Nick Kounis, has pointed out a shift in the Federal Reserve's focus towards jobs following a decline in the US labour market. The Nonfarm Payrolls fell by 23K in July, with downward revisions to previous months resulting in a mere 20K average monthly gain in employment. Falling labour force participation, while partly structural, often signals cyclical weakness in the labour market.
The data suggest that some recent payrolls strength may have been temporary. This could prompt the Fed to prioritize employment concerns, although ABN AMRO still anticipates the central bank to maintain a hold on monetary policy. High inflation still poses risks, leading to a potential hike.
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- Federal Reserve: Fed focus shifts to jobs – ABN AMRO fxstreet.com
- Trump renews bid to fire Federal Reserve governor news.sky.com
