In an interview with Bloomberg TV earlier on Friday, JP Morgan Chase International Chairman Jacob Frenkel expressed his view on the upcoming speech by the US Federal Reserve (Fed) Chairman Powell due later today at 1400 GMT.
Trump shouldn't intervene with the Fed's job.
The more interventions there are, the more markets will realize they are ineffective.
There is a huge amount of uncertainty caused by the trade war among other factors.
Trade war, Brexit, political risks should not be only handled by monetary policy.
Trade war has been affecting businesses in a very negative way.
Services is still okay; manufacturing and business investment are not okay.
Powell should be cautious later today.
He should emphasise on caution, going slowly and being data dependent.
By counting heads, it looks like the Fed may cut by 25 bps in September.
But the Fed has to be wary, they are not equipped to deal with the next recession.
There is also a need to have insurance in keeping monetary policy ammunition.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.