Huh? No one in charge of inflation control!
$USD/JPY (USDJPY.FX)$ The members of the administration have been largely decided, but there is no high-ranking official focused on solving inflation, with emphasis on tariffs, tax cuts, deregulation, and reduction of fiscal deficits. Tax cuts are compensated by tariffs, focusing on domestic production and consumption for economic revitalization, with increased tax revenue and exports due to corporate growth.
If this content is true, lowering interest rates forcibly through inflation and fiscal compression will still lead to inflation. The key to winning the election is to control inflation, but it is not visible from these members. Yesterday's appreciation of the yen and higher bond prices advanced rapidly, as expectations of lower interest rates due to less fiscal stimulus were not met. If there is a plan, maybe they are thinking that there would be no issue with inflation if there are tax cuts, increased revenue, and wage growth. If there is no clear way to lower interest rates, then it will definitely lead to high interest rates and a weaker yen. ^_^
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NAS100メイン。SOX切捨て利確済。債券ETFは9月に完全売却で当面入らない。トランプETFは金融、防衛宇宙・公益インフラに本気！
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ひろ0723 OP : If Powell is pushed out and interest rates are forcibly lowered, it could lead to severe inflation and a sharp depreciation of the yen, or Japan may be pressured to raise interest rates!
kikiyoshi : I think it's more likely to have low gold interest rates than high gold interest rates.
スマイリー山川 : Looks like a big inflation is coming!
J_M_RIN : I think you have a mindset that it's okay to continue cutting interest rates even if the inflation rate returns to around 3%. High prices -> wage increases -> consumption -> corporate growth (accelerated by tax cuts) -> capital return to the people -> consumption -> further growth -> return... I think that's the kind of person you think Trump is.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
ひろ0723 OP J_M_RIN : Interest rates are a burden on the economy, so they may lower the policy interest rates, or hint at tariffs on Japan to raise interest rates, aiming for a strong yen and decreasing variable interest rates. It feels like they might do both ^_^
Having some inflation is a sign of a good economy, which is good, but the aftermath is a bit scary, right? ^_^
ひろ0723 OP J_M_RIN : Considering inflation, there is a method to cautiously lower the policy interest rate while reducing the floating interest rates significantly by restricting the issuance of short- to mid-term bonds. With oversubscription and excessive purchases, interest rates go down and fiscal spending decreases. However, as RIN mentioned, there is a high possibility of ignoring inflation and pursuing a strong yen by lowering interest rates. If this leads to a rate hike in Japan, it will boost the yen and greatly benefit corporate revenue! But if the yen appreciates too much, imported prices will rise sharply, causing significant inflation issues. ^_^
J_M_RIN ひろ0723 OP : It will be interesting to see how much technology contributes to improving production efficiency and reducing labor costs, creating a corporate culture that can compete with interest rates.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Stocks and cryptocurrencies may support households in the USA that are not defeated by high interest rates.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")