Yesterday Donald Trump presented Jerome Powell's candidacy for the post of head of the Federal Reserve. The markets reacted quite calmly to this news, as this appointment was anticipated and already priced in. The only thing necessary for the final approval of his candidacy is that this appointment be approved by the Senate. The tax reform was also published yesterday: it proposed to decrease taxes, as well as change the taxation of individuals and legal entities. However, it is expected that this reform will meet resistance from both the Democrats and and some members of the Republican Party, since this reform proposal would trigger an increase in the budget deficit, but may serve as an incentive for the return of capital from abroad and to attract new money economy. The Dow Jones yesterday hit a new historic high and reached 23.516.
Yesterday for the first time in nearly 10 years, the Bank of England raised its key interest rate from 0.25 to 0.5%. However, this did not have the support rate of the British currency, as, at the time of his speech, the head of the Bank of England Mark Carney voiced a concern about the reduction of GDP growth in the coming years, and that the consequences Brexit will continue to have a negative impact on the British Pound.
