The U.S. stock market has given a positive reaction to Donald Trump’s anticipated choice for Treasury Secretary, who in an interview with CNBC stated that he sees a period of robust growth and reduced inflation.
Following the announcement made by Trump to appoint Scott Bessent, a well-known figure on Wall Street to a crucial economic position on Friday resulted in a stock market increase while Treasury yield fell sharply on Monday morning.
This decision indicates that Trump is looking forward to appointing an individual who has substantial market expertise along with a compatible economic philosophy for the role.
According to Evercore ISI’s chief strategist for international political affairs and public policy, Sarah Bianchi and her team, “This selection should be well-received by the markets, given Bessent’s comprehensive knowledge of financial markets and the economy, particularly the bond market, which will be essential for the Trump administration to secure in order to effectively implement its agenda.” She further added that the markets could not have done better than with Bessent’s appointment.
Trump’s victory in the elections earlier this month has resulted in the Republican party getting a majority in the Senate and the party maintaining a GOP control of the House and the markets have been mostly positive about this.
The bond yield has risen notably and some analysts are interpreting this as a sign of anticipated inflation increase while others are looking at it as traders factoring in expectation of stronger growth in the economy.
An interview was conducted with Scott Bessent the day after Trump’s victory, he then expressed his belief that the policies of the new president would lead to lowering inflation along with boosting economic growth.
He further remarked that Trump would never want to repeat the current situation America is under Biden-Harris. He stated that Trump is a promising leader and increasing inflation will probably be the last thing he desires.
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