Bonds and Fixed Income

[gfp927z]

>> Mnuchin <<


I was actually impressed listening to Mnuchin and the Commerce Secretary pick Wilber Ross (link below). These guys sound like they know exactly what they want to do.

Based on what Rickards has said, Trump's domestic plan of tax cuts and infrastructure spending is in direct alignment with what the Fed now wants, since it is virtually guaranteed to boost the economy and create enough inflation to finally allow the Fed to 'normalize' rates and reverse their bloated balance sheet.

The impression one gets from Rickards is that the Fedsters don't really care about boosting the economy to help the US population, they only care about generating enough inflation to allow them to 'normalize', which will give them ammo to deal with future financial crises.

The way things are now, with interest rates near zero and the Fed's balance sheet at 4-5 trillion range, the Fed has no tools left to deal with even a modest financial crisis.

So domestically (tax cuts, infrastructure), Trump seems to be on solid ground and will have full support of the Fed/Deep State. Foreign policy-wise could be a different story however, but we'll see who he picks for Sec of State -