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malianzhong

@malianzhong

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A few days ago, I came across a viewpoint: why does Trump need to impose tariffs, cut government spending, and reduce employment? It’s because he needs an economic recession. This is also the reason for the sharp drop in this round of market trends. Wall Street’s perspective is: by cutting government spending and employment, as well as imposing tariffs, this will hit the economy, subsequently triggering a deflationary effect, which in turn will push interest rates down and weaken the dollar, paving the way for private sector growth and stimulating corporate vitality. However, this transition requires enduring short-term turbulence first. Nomura Securities: The core of the Trump administration’s policy lies in breaking the U.S. economy’s long-term reliance on government spending, pushing the private sector to become the dominant force in growth. I suggest everyone take a look at the articles on @WallStreetCn.
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