Apr 13 – Over the past few years, the US Federal Reserve and the world’s central banks have pushed interest rates down with massive money printing and thus the stock markets to record levels. Now, however, the Fed is tightening its monetary policy. British hedge fund manager Crispin Odey warns of the consequences of this policy, especially as US President Donald Trump is fueling the economy.
The S & P500 is well on the way to recovery: there are many reasons for this. The Syrian crisis has eased a bit after US President Donald Trump has described an intervention in Syria as “an option”. At the same time, he is considering re-entering the negotiations on the Trans-Pacific Free Trade Pact TPP. In addition, the US president said that a trade war with China could be prevented if China opened its market more for US products. In the environment, investors are buying heavily US stocks.
Fed slows down the economy considerably
How long the recovery lasts depends on two factors: On the one hand by Trump. Largely due to its tax reform, according to the Congressional Budget Office (CBO), the new borrowing Fiscal Year 2017/18, which ends in September, is expected to rise more than 20 percent to $ 804 billion. For the coming fiscal year, a further increase to $ 981 billion is planned. With that, Trump is fueling the economy, trying to position the Republican electoral chances well into the 6/5 midterm elections.