Bessent believes that the Federal Reserve has room to modify the 2% inflation target in the future, and this Trump team is clearly much stronger than the previous one, with opportunities more advantageous.
Although Trump's big mouth is indeed annoying, especially in the financial realm where he always creates various super bubbles, from a strategic perspective, if this strategy can be steadily implemented for 10 to 15 years, the United States will definitely welcome a very prosperous period.
The logic that makes them superior to other rulers is based on a few core points:
1. They dare to admit to excessive money supply and are willing to continue to bear the costs of this excess. No longer hiding and avoiding the essence of the problem.
2. They are at the turning point of AI breakthroughs, forcing the industrial chain to return to the homeland. They seize the dividend period of technological explosion while using tough means to reshape the foundation of the real economy.
3. They do not like to meddle in others' affairs and dare to say that the world is black and white, especially in politics. Historically, very few politicians have dared to admit that this world is a dirty dye vat, but Trump does. This extreme realism allows him to take the initiative in the game.
4. They no longer invest a lot of time and energy into allies, but focus on themselves and the surrounding regions.
In the future, it is highly likely that the Republican Party will dominate for a long time, and the Cold War mentality held by the Democratic Party will thus collapse. A small prediction: the next election is likely to still see the Republican Party win, and even in the next 15 years, we may not see the Democratic Party in power.
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