If other things dont change, lowering interest rate will benefit stock market, but not sure if it is good for crypto.
@matthew68265 ай бұрын
Thanks Professor. There is a saying that “protectionism policies” enforced by Trump may boost supply driven inflation. Further, there will be potential fiscal deficit which has to be funded by monetary easing. As such, although we are stepping into a potential rate cut cycle, there is a high chance of re-inflation in medium term. Thus, the yield curve may steepen and room for lowering short rates is limited. Wondering if professor can share your views on this? Is this a valid logic flow? Very much appreciated. Matthew
@profterencechongtheeconomi83915 ай бұрын
This is under the assumption that US economy will not collapse. If it collapses, there will be deflation and interest rate much be cut to stimulate the economy. I see the chance of US steps into recession a high probability event with in 6 months.
@matthew68265 ай бұрын
Thank you professor, very insightful! Thank you very much for your time. One follow-up question if I may - The US economy has been showing resilience (stronger than expected non farm payroll, solid GDP growth). The only indication should be unemployment rate which lately has been trending up. May I understand how to interpret the data ? Wondering what’s indicating a potential recession?
@profterencechongtheeconomi83915 ай бұрын
@@matthew6826 unemployment rate has been rising, last year July is 3.5 percent and now is 4.1 percent. Last 3 months unemployment has been rising nonstop. Commercial property market may also burst, as well as the all time high stock market, whose chance of burst is high.