Trump ‘bombards’ Wall Street: Why is the good news now making the market scared?
Trump has fired again recently, and this time the target is Wall Street's ‘abnormal’ logic.
He unveiled an impressive economic report card: GDP grew by 4.2% in the third quarter, far exceeding expectations. According to the old rules, such explosive good news should have made the market cheer and soar. But the reality is that the market is cold and quiet, and may even decline.
Trump pointed out: Because Wall Street now suffers from a kind of ‘good news phobia’.
They see a strong economy, and their first reaction is not to celebrate, but to panic—worried that if things are too good, inflation will rise, and then the Federal Reserve will immediately move to raise interest rates and dampen the market. Therefore, ‘good news’ has instead become a ‘bad signal’ of tightening policies.
Trump believes this is completely backwards. In his view, a healthy and prosperous market itself does not create inflation; it is wrong and rigid policies that do. His ideal state is very simple: when the economy is good, the market should rise; when the economy is bad, the market should naturally fall. It should not be like now, where good data can’t rise due to the fear of interest rate hikes, living in constant anxiety.
His remarks superficially criticize market sentiment, but actually target the Federal Reserve’s decision-making philosophy. The Federal Reserve chairman he wants is someone who can consider lowering interest rates to support prosperity when the market is improving, rather than a ‘bookworm’ who only focuses on data and is eager to hit the brakes to prevent ‘potential’ risks.
Finally, his statement, “Anyone who disagrees with me can forget about becoming the Federal Reserve chairman,” turns this route into a hard standard.
This speech is not only an interpretation of market sentiment but also a clear economic policy declaration. It clarifies a deep contradiction: between ‘controlling inflation’ and ‘nurturing market/economic growth’, how should the steersman weigh the balance? Trump obviously chooses the latter.
Next, whether the market will truly change this ‘good news phobia’ may depend on whether the person ultimately sitting in the Federal Reserve chair understands this statement. $BTC
