Hyundai Research Institute said on the 4th that the Trump administration’s
fiscal and monetary stance is essentially expansionary, raising market concern
that abundant liquidity could concentrate and amplify volatility in financial
and asset markets. The institute said markets must assess the risk of a global
market crash if expansionary fiscal policy is constrained by shifts in US
politics, or if a strengthening of Fed independence leads to tighter monetary
policy. It recommended regulators shore up domestic financial and asset-market
resilience and step up monitoring of cross-border speculative capital flows. The
report also warned the administration could, to recover slipping support, ignore
existing agreements and readjust tariffs applied to goods and trading partners.
