The Kobeissi Letter
The Kobeissi Letter|May 21, 2025 22:16
In a way, President Trump may actually "want" a recession. A recession achieves MOST of Trump's economic goals at once: 1. Lower US inflation 2. Lower treasury yields 3. Lower trade deficit (through tariffs) 4. Fed interest rate cuts 5. Lower oil prices After the recent surge in Treasury Yields, the Trump Administration has realized the trade deal headlines won't work anymore. A recession may be the "best" solution after years of inflation and "free" money.
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