Having filled up his administration to the brim with former Goldman staffers, to the point where even President Trump realizes there may be too many “Goldman Guys” on his team, Bloomberg reports that in an attempt to branch out, Donald Trump plans to nominate David Malpass, 60, the former Bear Stearns economist, as U. S. Treasury undersecretary for international affairs.
For those trading FX, his role will be critical: “His first job will be to help guide policy as the world wonders whether the new administration will make a habit of talking up or down other countries’ currencies.”
Malpass will report to the Treasury secretary on the U. S.’s international economic relationships, most importantly with China. Ties between the world’s two largest economies have become more tenuous since Trump’s election. The Republican and his advisers have not only talked about China and Japan artificially manipulating their currencies — after walking back a pledge to label the former as a manipulator in the early days of the administration — but have also moved foreign exchange markets by jawboning the U. S. and Canadian dollars, Mexico peso, and the euro.
This post was published at Zero Hedge on Feb 12, 2017.
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