Last week, President Donald Trump sought that “the interest rates immediately” when he spoke to the global economic forum in Davos, Switzerland.
He has revealed the cost of the fall of oil as a driver to happen, as well as “his historical victories” in the recent election of the President.
The common sense is that low inflation should be lower monetary rates, which works.
However, a great question is why inflation is less than Trump’s second term?
Due to good progress such as using the lowest government money, or because of economic disaster?
Bond yields down as a stock fall
This morning, stock market sold as ai companies are recognized, conducted by the Chinese company news called Deepseek.
A long short story, first consideration is what is the deepest turning AI for reliance on the rest of the rest, which uses less products and computer.
Therefore, Chipmakers are similar to the stock market Darling Nvidia (Nasdaq: NVDA) can be subject to pressure when Adget for their chips are turning past.
Of course, counterrarceform simter is that more efficiency leads to high use. This item is known as “givomons paradox.”
It means AI can be more disappointing, finally leading to the biggest chip search, although the amounts fall, the last result was the highest sales / profit of these companies.
Therefore a person may not want to be dreaded in this matter right away when they try to get economic management or stock market.
However, it calls to ask higher questions in the stock market and collecting just a few of the most beautiful seven words.
If investors all determined the most expensive equity, we could see traditional plane into the safety of the bonds, thus increasing their price and fruit reduction.
And the prices of long-term loan may go too low.
What about Trump tax threats?
Another progress that happened this week was a new tax rate in Colombia, related to dismissal.
Trump management has threatened to cool up to 50% of tax rates if the country relieves Colombian immigrants, but the Colombia government eventually returned.
As a result, the tax threats were now, threats. And it’s first to make myself wonder if they will be more than other countries.
The Bond harvest reached the back in October as Trump Frontrunner and his expected policies identify higher inflation.
The interest rates are higher when the inflation expectation is high, and tax prices are said to increase prices.
But if it turns out that tax prices do not happen in the body, or slightly aggressive, the fear of bolds in bond may be right now.
The 10th year yield jump nearly 100 points (BPS) from the beginning of October from 3.75% to 4.75%, before drop 20 BPs recently.
If this continues, the parties tax prices will be easily able. And already they have, sweeping from 7.25% up to 7%.
The following stand can come back to HIGH-6s if investors sit and scan. Or if economic messages continue to show inflation and the economic downturn. And that’s a problem.
Weak economy = low prices
Trump can find his desire at low prices if the economy shows signs of weaknesses.
Considering the stock market collision and investors enter the lines, low-masked prices can be one silver lining.
But it is not clear whether Trump will see that as victory. Of course, it can help existing homeowners in low prices.
And some home consumers will be able to see it as a chance again, even if the wealth of wealth is losing because of the infrastructure.
However, the economy will eventually become more important than low-cost prices.
Therefore, in fact, the key will be discussing needle and arrive when low percentages of the 30 years low, but not because of the drought economy.
Down because inflation is dropped, the tax price threat was full, and government spending actually not as bad as they are afraid.
If Trump could pull that, it will be good around. Item may mean that you will need the expected motivation of your mortgage.
That situation can result in lower-lower-6% price, perhaps high-5s, but not returning golden drought prices for 3%.
Learn to: Does the President set prices for partnering with them?
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