Why FRS - a serious problem for Donald Trump?

07:46, March 1, 2017

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to Donald Trump will be extremely problematic to achieve economic growth in 4%, he repeatedly promised such rates. And for this purpose there is a lot of reasons.

to Take span at least data on trade balance for January. Deficiency made $69,2 billion, and it almost the worst indicator since 2008. Was worse only in 2015

And it negatively affects economic growth. By estimates of Bank of America, in the I quarter the American gross domestic product at best will grow by 1,8%. One of the main reasons of increase in negative balance of the foreign trade balance is, certainly, dollar strengthening. Reduction of export costs to the country approximately 1,5% of GDP growth.

the Situation weakening of the American currency, but at Fedrezerva, apparently, could correct for br other plans.

For the last couple of days the probability of increase of a rate at March meeting flew up to 75%, the truth then again decreased a little.

For comparison, last week the indicator did not exceed 30%.

the Dollar respectively reacted growth. Members of the committee on operations in the open market do to br by br everything for maintenance of strong dollar. At the beginning of a week the head of FRB of Dallas hinted at need of toughening of policy already at the next meeting, and the day before one of the most authoritative representatives of FRS - Dadli William gave a similar signal. In interview of TV channel "CNN" he declared that arguments in favor of steel "much more weighty" toughening. The chairman of Federal reserve bank was San Francisco Williams John, he expects that increase of an interest rate "will be seriously considered" by members of FRS at meeting on monetary policy on March 14-15 in Washington D.C..

there is nothing surprising that the dollar reacted growth. The index of the American currency reached a point 101,5 points.

Though need to note br that as a whole in January and February of the quotation of dollar showed some raskorrelyation with expectations of increase of a rate.

If Fedrezerv nevertheless will go for rate increase, the American economy will receive one more blow: increase of a rate will promote hardly to acceleration. So the new President of the United States of America is faced not by simply complex challenge, and almost impracticable.

By the way, the legendary American financier Bogl John holds the same opinion. I do not think that it in general is possible for someone. The American economy has certain limits which do not depend on the one who sits in the White house, he told.

Bogl John

"I think that reduction of regulatory norms can be quite reasonable measure if changes are carried out competently. But full refusal of financial regulation seems to me any form of madness. I also consider that construction of trade barriers – the wrong way for business".

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Donald Trump

Main activity:Businessman

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John Williams

Dadli William

Bogl John

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President of the United States

CEO:Dzhozef Robinett Bayden-mladshy (President of the United States of America)

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