🔥ATTENTION🔥

🎯Trump's BIGGEST PROBLEM could have a VERY POSITIVE solution for the FINANCIAL MARKETS

What is Trump's BIGGEST PROBLEM⁉️

▪️Trump wants lower rates and the FED is not cutting them

▪️TRADE AGREEMENTS are being announced but BOND YIELDS keep rising

What does it mean that bond yields are rising and why is it a problem for Trump⁉️

▪️Rising bond yields make the U.S. DEBT much more expensive

▪️We already saw how the TREASURY announced it planned to REPURCHASE BONDS to FINANCE THE GOVERNMENT at the LOWEST COST

▪️When they refer to FINANCING THE GOVERNMENT at the LOWEST POSSIBLE COST, they mean LOWER RATES (buying bonds causes the price to rise, yields, being inversely proportional, fall)

▪️We know that the U.S. has to refinance $7T of its debt this year, with the current bond yields it becomes very EXPENSIVE

▪️Additionally, Trump needs a cheap and expanding economy to validate his economic model and improve his positive image (which has been declining since he started with the tariffs)

👉Now why could this problem be VERY POSITIVE⁉️

🟢Powell indicated that to reduce the interest rate, tariffs need to be reduced, as they are higher than expected and can increase inflation.

🟢In this context, if Trump really wants LOW interest rates for the cost of debt to be lower and to improve his positive image, what he has to do is REDUCE/ELIMINATE the tariffs

🟢IT IS NOT COINCIDENTAL that the day after Powell suggested this, Trump announced trade agreements and appeared much more flexible

📍In summary, the solution to the rise in bond yields and high rates is the perfect combination for the financial markets: LESS TARIFFS and the FED CUTTING the interest rate