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Exclusive: Despite the latest market volatility and the political pressure on the Fed, ”says JPMORGO Jokūbas Manoukian Fate He continues to trust the long -term dominance of the US economy by rejecting “America” calls as short -sighted. He argues that the American institutional resistance, including independent FED and strong legal and cultural foundations, unequivocally determines political fluctuations and outperforms global peers.
Although the current economic perspective can cause some concern about the trajectory of the American economy, those fears will not be enough to deprive the US as a world economic power plant.
At least that’s how JPMORGO US Investment Strategy Manager Jacobo Manoukian, who tells Fate He pays little attention to “Sell America” calls.
Earlier this year, investors may have been tempted to transfer their cash from the US, taking into account the volatility of the market resulting from tariff policy and issues of economic grounds – especially federal and government debt.
Perhaps investors have been looking for a safe refuge – gold or perhaps even euro or yen – after only a few months of markets with 500 markets to the S&P 500 chart so far.
Anxiety that the US may lose a place at an economic table head Fate In an exclusive interview this week.
According to him, what he calls “tariff tantrum” or “tariff panic,” he said there are many voices that the US did not like the “travel direction”, their concerns that the expanding deficit, business -friendly rates and chaotic political formation created a difficult business environment.
The choice of these bears was that in recent years they became too confident in the US assets and needed to be reorganized-they called for investors to sell America.
“We completely disagree with this idea,” said Manuukian. “There are cyclic reasons to believe that the US dollar can continue to underestimate the main trading partners, but we completely disagree with the idea that the US somehow loses its position as the center of the financial universe.
“There have been periods in the history of the US system – I define it as this cycle of institutions, laws, cultures and innovations – to promote the return on the capital market and protect shareholders constantly inspected. Over time it improves and hardens and becomes stronger.
“It is very different from the system, institutional solutions, political decisions and cultural DNA that exists in other parts of the world.”
He continued, “It doesn’t matter [of] What happens deeper than short -term election cycles. ‘
This is also a Mokian justification with customers who ask the day, during the day, about the American $ 36.2 trillion -worth of national debt burden – too much attention has been paid to the fear that President Trump’s One Big Beautiful Bill can do so taller. This is a thought that was even pushed by the former Government Department of Efficiency (Doge) Boss Elon Musk, who said the bill would abolish all the efficiency work he had done at the White House.
MOKIAN Said: “Probably Ever Client I Speak with ASKS About the Federal Debt and Deficit. It is iop of Mind for Evening, BUT… If You’re Actally Looking at the US LIKE A CREDIT UNDERWRITER, WHICH IS WHICH IS WHEN YOU HAVE TO DO WHEN YOU Largest Economy in the World, IT HAS THE MOST VIBRANT INNOVATION CYCLE RECTIVE TO OECD COUNDIES, IT HAS Actually Pretty Low Tax Collections AS A PERCENTAGE OF GDP, It The World’s Reserve, its outer debt
Manoukian is not one of its optimism about the permanent market. The Goldman Sachs sees that next year the S&P 500 reaches nearly 7,000, which increases by 11%based on the expectation due to the normalized Fed norm.
While markets usually reduce the price from the current 4.25 to 4.5%of the rate, President Trump is convinced that the Federal Open Market Committee must go further, faster. Trump even offered reduction rates to 1%, which accounts for more than 70%.
Although analysts trust to some extent to be reducing, the need for an independent bank is one of the main systems that gives myoukian the hope of the future of the US economic brand.
“Part of what the Treasury and the White House wants is… the renewal of borrowing from the private sector and households so that the government does not have to borrow so much money on generating economic growth,” said Myukian. “They need lower long -term interest rates to do this.
“The market says a reliable power that can act on your own [about what] The US is different from other places. ‘
He added that in the past, he was involved in political fashion and from it to the Central Bank’s independence argument as one example using the example of President Nixon and Arthur Burns.
“What happened is that the Fed develops after that to become a much more independent institution that was not as visible in the White House,” Manukian added. “Even how the board is structured and the way the governor’s conditions are incompatible with the political cycle, and the fact that it still has a chair but a board that counts all votes.
“So this is another area where I think there is only a little too much resentment from the market due to the erosion of institutional reliability.”
This story was initially displayed by fortuna.com
