Lev Menand on Trump's Attempt to Fire the Fed's Lisa Cook

Bullish:

• $ASSETBUBBLE - Trump's potential economic policies could lead to asset inflation and market exuberance, creating conditions for an asset bubble through easy credit and loose monetary policy.

  • “Trump wants to run a boom economy, overheated economy. And in order to do that, he wants to create very easy credit conditions and loose monetary policy and monetary expansion.”

    Lev·20:41

  • “We get asset bubble, right? We get a lot of leverage in the financial system because deregulate bank balance sheets and we lower short term interest rates. That's going to lead to lots of credit expansion.”

    Lev·20:49

Bearish:

• $FINANCIALS - Potential deregulation and increased leverage in the financial system could lead to higher systemic risk, suggesting a bearish outlook for the financial sector.

  • “We get asset bubble, right? We get a lot of leverage in the financial system because deregulate bank balance sheets and we lower short term interest rates. That's going to lead to lots of credit expansion.”

    Lev·20:49