This week, we saw predictions Trumponomics will indeed bring a spike of growth, but it will be a spike quickly destroyed by crippling interest rates. Could this be what’s causing the US Federal Chair Janet Yellen to suggest raising rates too fast would be ‘unwise’? As seats start opening up at the FOMC, Trump is in position to add key new members and start swaying the vote in his administration’s favor.
Threat Level ‘Yuuuge’ – Spiking Interest Rates Could Spoil Trump’s Plans
Trumponomics’ double-edged sword: stocks are rising, but so are interest rates. Investors are betting on a Trump-fueled inflation surge on top of massive tax cuts. Trump sees US companies investing in efficient productivity to increase supply. Trump’s economic vision seems at odds with both investors and the Fed in regards to efficient production, according to Fortune. The Fed is predicting price surges in the market, whereas Trump sees production surplus exploding with rising demand. This ‘supply side revolution’ Trump promises has the Fed shaking its collective head in disagreement.
This post was published at Schiffgold on FEBRUARY 24, 2017.
Follow on Twitter
Recent Comments