(AOF) – According to investors' consensus, Trump's program will be inflationary and interest rates in the United States will remain high, “which will inevitably support the dollar.” However, for François Pascal, director of diversified management at Mandarine Gestion, “the dollar will not be able to rise for very long” and “the reaction of the markets since the election of Donald Trump will only be temporary.” The president-elect also indicated that he wanted to significantly increase oil and gas production in order to reduce the bill for the American consumer.
Furthermore, Saudi Arabia “could also have an interest in re-increasing its oil production quotas after having agreed to reduce them at the time of Covid”. According to Mandarine Gestion “a decline in energy prices could contain inflation and therefore allow the Fed to lower its rates, which will ultimately limit the strength of the dollar.”
François Pascal also judges that if the Trump administration promotes the growth of cryptocurrencies, this risks competing with the dollar as a store of value, and therefore weakening the attractiveness of American debt for investors.
