ChainCatcher reports, according to Jinshi data, CITIC Securities research report stated that on July 14 local time, US President Trump's interview statement shocked the market, while US Treasury Secretary Mnuchin's interview calmed the market. The report believes that Trump's "bad cop" disrupting the market + Mnuchin's "good cop" stabilizing the market is the "clear routine" of the "TACO transaction" in a news-driven market led by Trump.
On issues such as Section 899, US-Japan tariff negotiations, and Powell's potential dismissal, Trump's statements have brought negative impacts to the market. Afterward, Mnuchin has made favorable market-related statements and actions: he called on the US Congress to remove Section 899 in OBBBA, remained optimistic about reaching a US-Japan tariff agreement before August 1, and persuaded Trump not to dismiss Powell.
Mnuchin played the role of a spokesperson for the Trump administration's market communication. Facing Trump's sudden "bad news" as the "bad cop", it is necessary to pay attention to Mnuchin's "good cop" perspective on related events, and his statements may be the trigger moment of the "TACO transaction".
