Hedge fund manager Scott Bessentwho would be vying for a high-level position in the Trump administration, such as Treasury secretary or chairman of the Federal Reserve, wrote in a statement. Wall Street Journal opinion piece On Monday, the reactions of financial markets to the November 5 elections “prove” that investors “unambiguously adhere to the economic vision of Trump 2.0”. Well, they certainly prove that stock investors like the idea of ​​lower tax rates and less regulation. Beyond that, it’s unclear what they prove, and time is running out for Donald Trump and his surrogates to provide answers to some crucial questions about economic policy.

Just look at the government bond market, which is the benchmark of the global financial system, and the dollar, by far the main global reserve currency. These markets are signaling that warnings of faster inflation from economists who have analyzed the proposed Trump administration’s policies are all too real. This means interest rates will stay higher for longer and tighter financial conditions will dampen the economy.