CITIC Securities: The Trump administration may push down long-term interest rates through personnel changes at the Federal Reserve

According to a research report by CITIC Securities, it is expected that the domestic and foreign policies of the Trump administration will have a profound impact on the global market this year. CITIC Securities believes that one of the core goals of the Trump administration is to drive down long-term interest rates through personnel changes and related work at the Federal Reserve, in order to boost the traditional economy and assist in the midterm elections. If successful, it will benefit global stock markets and commodities. Its diplomatic actions focus on domestic affairs and voter demands, which may only have a pulsating impact on major asset classes. The degree of fiscal deficit expansion remains uncertain, which is favorable for gold and non-ferrous metals. The results of the midterm elections are very important, and if the Republican Party loses, it will pose a short-term negative impact on risk assets other than US Treasury bonds.