Guiding Powell To The Exit

Treasury Secretary Bessent suggested Powell should decide on completing his Fed Chair term but shouldn't remain on the Board afterward, citing potential market confusion. Bessent's comments follow President Trump's criticism of Powell's interest rate policies, accusing him of political motivations. Trump's potential influence on the Fed Board, with upcoming vacancies, raises concerns about the central bank's independence. Governor Bowman's seemingly shifting stance on interest rates has drawn scrutiny, prompting questions about potential political influence. The ECB's Bank Lending Survey indicates continued monetary easing impact, though firm loan demand remains weak due to economic uncertainty. Despite this, household loan demand is strong, fueled by consumer confidence and reduced borrowing costs. A US-Japan trade deal has been reached, including reciprocal tariffs and increased Japanese investment in the US, potentially benefiting the Alaska LNG project. The deal also opens Japanese markets to US agricultural products and vehicles. Upcoming US-China trade negotiations may address China's reliance on Iranian and Russian oil. The energy market shows a muted reaction to recent trade developments.