The Trump administration may intentionally create uncertainty in the stock markets to the Federal Reserve Chairman in the Jerome Powell corner to reduce interest rates, according to the market commentator.
Doing this increases the possibility of the United States does not need to re -financing about 7 trillion dollars of debt it owes in the next few months, commenting Bitcoin Anthony Pass He said In the publication of March 10.
“They take things with their hands,” US President Donald Trump and Treasury Secretary Scott Besin said.
In late January, Powell announced that the Federal Reserve does not reduce interest rates from the current target range of 4.25 % to 4.5 % despite Trump's calls to do so.
Boxbrano said that the last market's panic was partially driven by Trump's definitions-and was used to create a more suitable bond market while lowering the treasury return for 10 years.
He pointed out that the treasury returns for 10 years already under From approximately 4.8 % in January to 4.21 % now – a sign that the alleged Trump strategy “is heading in the right direction”.
source: Thomas Kralo
Whether the theory of Poxpiano is correct or not, the stock market was connected late, and the encoding was more difficult.
Wide market index funds such as the Street Street Street Index (SPY) in State Street (Spy) He falls 2.66 % on March 10 alone, while nasdaq-100 % He falls 3.8 %, Google financing appears.
Both indexes decreased by 7.32 % and 10.7 % during the past month, while Bitcoin (BTC) decreased by 27.4 % of its highest level ever, and more than $ 1.2 trillion was to survey From the maximum coded currency market since December 17.
PowPaniano said that if the stock market continues to go into, it will return to the “WhO First First” competition between Trump and Powell.
While Trump did not confirm such a strategy, POMPOYLIANO referred to an interview with Fox News on March 9, where Trump He said: “No one gets rich when interest rates are high because people cannot borrow money.”
PoxPyliano added that reducing interest rates will also benefit American consumers:
“The big goal, interest rates decrease, and this will lead to more economic activity, thanks to reaching cheap capital. Give people cheap capital and they will go and do things with them.”
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CME Fedwatch, a tool used to measure expectations to change the interest rate in the Federal Reserve, distributed a possibility of 96 % to remain the target rate between 4.25 % and 4.50 % after the next Federal Reserve meeting on March 19.
However, it is close to 50-50 possibilities that the target rate will be reduced at the next meeting of the Federal Reserve on May 7.
The federal reserve usually avoids lowering interest rates when inflation is high, as one of its basic goals is to maintain prices.
However, Trump's stagnation, or “Trumpcession”, as some call it, may force the first bank in America to start again.
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