madridtrading @madridtrading: "TRUMP: ✅️ POWELL: ❌️ Yes. The..."

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TRUMP: ✅️ POWELL: ❌️ Yes. The guy who went bankrupt several times, yells, and insults is actually right when it comes to the effects of tariffs — and the calm, intellectual type is not. Actually, I’d say both 𝗧𝗿𝘂𝗺𝗽 and 𝗕𝗲𝘀𝘀𝗲𝗻𝘁 are right. But in the end, it was Trump who chose Bessent — probably to bring some balance and common sense into the chaos that is the U.S. government administration right now. So, where are these two right and the other wrong? ▪︎ You can have a recession or inflation — but not both at the same time. I know some people are trying to change the basic rules of economics, but history clearly shows that it’s impossible to see a recession and inflation happening at the same time. This is not 𝘀𝘁𝗮𝗴𝗳𝗹𝗮𝘁𝗶𝗼𝗻, where GDP growth is minimal, nonexistent, or even slightly negative. What we’re talking about here is a real recession, with layoffs, falling production, and lower consumption — a situation that always brings less 💸 inflation. Still, some people, influenced by the doubts and fears expressed by the 𝗙𝗲𝗱𝗲𝗿𝗮𝗹 𝗥𝗲𝘀𝗲𝗿𝘃𝗲, have come to believe that both things could happen together because of tariffs. But that’s simply not true. ▪︎ Taxes shouldn’t define monetary policy. Tariffs are taxes — taxes on imported goods, to be exact. And just like a VAT increase doesn’t force a central bank to change its monetary policy, I don’t see why tariffs should. In fact, VAT affects everyone — locals and foreigners — while tariffs only affect a few. From a traditional point of view, Trump had only announced restrictive measures on “𝗟𝗶𝗯𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗗𝗮𝘆” — the kind of measures that usually lead to less spending and slower economic activity. If you think that’s what’s going to happen, then yes, ✂️ lower interest rates. But if you believe spending is still strong, the labor market is solid, and the economy is growing, then do nothing. In that case, why did they cut interest rates before the November 🗳 elections? Is the Fed actually playing politics? 🤔 👉🏻 In conclusion, despite the criticism, Trump and Bessent only did what they said they would do during the campaign. This wasn’t something the markets couldn’t have known. Even Trump’s unpredictability and negotiation tactics were already expected. What wasn’t expected was the Fed’s refusal to apply the right monetary policy — not a more aggressive or more accommodative one, just the right one. In this case, copying what Europe did would have been enough. And if the U.S. ends up having to follow Europe’s lead on something, then Trump was right to call 𝗣𝗼𝘄𝗲𝗹𝗹 “Mr. Too Late.” He earned that name. If you enjoyed this content, don’t forget to ❤️ like and share it—it really helps! $SPX500 (SPX500 Index (Non Expiry)) $NSDQ100 (NASDAQ100 Index (Non Expiry)) $OIL (Oil (Non Expiry)) $GOLD (Gold (Non Expiry)) $BTC (Bitcoin)

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