10/01/17 - May Indicates Clean Break From EU Isn't Inevitable

GBP

Amid concerns that she is planning to pull the UK out of the single market, Prime Minister Theresa May said yesterday that a clean break with the EU's single market is not inevitable. In an effort to clarify the situation, Mrs May said that her comments had been misinterpreted - however the Pound did not recover from 10 week lows versus the Dollar. She reiterated that her Government will still seek to obtain the best possible deal for the UK, and that she will not reveal her full strategy until she triggers Article 50.

USD

Potential candidates to head the Federal Reserve in 2018 have suggested that monetary policy would become tighter if they were in charge. Glenn Hubbard of Columbia University, together with Stanford University’s John Taylor and Kevin Warsh, criticized the central bank at the annual American Economic Association meeting. All three felt that the Fed tried to do too much to help the economy,  at a time when monetary policy could not solve the underlying issues.
 
All three individuals are  former officials in George W. Bush’s administration, and are seen as potential candidates to take over in the event that Donald Trump decides not to nominate Janet Yellen for another four-year term as chair. Yellen’s current term is due to expire in February 2018. During his Presidential campaign, Trump criticized Yellen, at one point accusing her of keeping interest rates low to benefit the Democrats.