Report
Bruno Cavalier

Does Trump want to monetise the federal debt?

Since the passage of the One Big Beautiful Bill Act at the beginning of July, fiscal issues have taken a back seat. Donald Trump promised tax cuts, and they have been voted through. Mission accomplished. He then set about increasing tariffs to bring "hundreds of billions" into the US Treasury's coffers. Mission accomplished. All his energy is now focused on taking control of the Fed. It's all connected. The federal budget deficit exceeds 6% of GDP, including 4% in interest charges. Customs revenues will never bring in much more than 1% of GDP. Controlling the Fed means having the means, if need be, to monetise the debt as he sees fit. Needless to say, this is a major inflationary risk.
Provider
Oddo BHF
Oddo BHF

​Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.

Analysts
Bruno Cavalier

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