Firstly at Bloomberg’s microphone: “The biggest risk we face globally today is that the world thinks we have passed the peak of inflation” adding that his point of view was in contradiction with this what market forces say. “I could really imagine a scenario where we have high inflation. »
Then he spoke on CNBC: “I am cautiously optimistic. That being said, I have scenarios where it could be pretty bad.” Referring in particular to the policy of stimulating the private sector that Trump wishes to pursue: “I believe that if this unlocks all this private capital, we will experience enormous growth. At the same time, this will partly create new inflationary pressures. I think this is probably the risk that is not taken into account by the markets. I think the bond market is going to tell us where we’re going.”
He continued with some rather striking words: “There are very significant inflationary pressures that we all need to be aware of.” “And depending on how this plays out, there is a scenario where we would have much higher interest rates due to inflation. And this would have a very negative impact on the stock market. »
A few hours later, it was Donald Trump who spoke in Davos in duplex, making it clear that he was going to ask the Fed to lower its rates. But a request which comes in a context where progress on inflation across the Atlantic has been anemic for several months, with underlying CPI inflation moving between 3.2% and 3.3% for 6 consecutive months. Which potentially portends future tensions between Donald Trump and Jerome Powell…
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