U.S. Treasury Secretary Janet Yellen promotes betting on America: Tax cuts and other Trump-era policies will attract investment in the U.S

Faced with market turbulence and the international community's skepticism towards the United States, U.S. Treasury Secretary Steven Mnuchin vigorously promoted the long-term growth potential of the U.S. economy to investors, urging them to bet on America and refuting the theme of "selling off America."On Monday, May 5, at the Milken Institute Global Conference held in Los Angeles, Mnuchin defended the economic agenda of the Trump administration, emphasizing that "the main components of the economic agenda—trade, tax cuts, and deregulation—are not standalone policies, but interlocking parts of an engine designed to drive long-term investment in the U.S. economy."Mnuchin stated that these policy combinations would bring "more jobs, more housing, more growth, more factories, more key manufacturing plants, more semiconductors, more energy, more opportunities, more defense, more economic security, and more innovation" to the United States.Mnuchin claimed that "the U.S. is the primary destination for international capital," and the goal of the Trump administration is to make America more attractive to investors, with the government's economic agenda "advancing towards the same goal—consolidating our position as a global capital center."Mnuchin indicated that the Trump administration is striving to create the best environment for "stable interest rates," with government policies aimed at returning to the "non-inflationary" economic growth seen during Trump's first term."By this time next year," GDP may grow close to 3%Last week, the U.S. Department of Commerce announced that the U.S. GDP contracted at an annualized rate of 0.3% in the first quarter, far worse than the 2.4% growth in the fourth quarter of last year, exceeding market expectations in terms of poor performance.According to CCTV reports, the first quarter GDP highlighted the rising uncertainty caused by the U.S. government's tariff policies, leading to a decline in business and consumer confidence, while raising concerns about a slowdown in the U.S. economy amid a global trade war.CCTV cited expert analysis stating that the damage caused by increased tariffs to the U.S. will not end quickly, and if the excessive imposition of tariffs continues, the U.S. economy will still not perform well in the second quarter, potentially experiencing consecutive negative growth. Some scholars have bluntly stated that U.S. tariff policies are bound to fail.However, Mnuchin remains optimistic about U.S. economic growth. After his speech at the Milken Institute on Monday, Mnuchin told the media that "by this time next year," the policy combination of the Trump administration could push the U.S. GDP growth rate close to 3%.Mnuchin stated that a clever deficit reduction plan could reduce the U.S. fiscal deficit by about $300 billion each year, equivalent to about 1% of the nearly $30 trillion U.S. economy. If the deficit is reduced by about 100 basis points each year, GDP could return to its long-term average level of 3.5% within four years.He also mentioned that if deficit reduction could eliminate the credit risk of U.S. Treasury bonds, then "interest rates would naturally decline," further reinforcing the U.S. position as "the preferred destination for international capital."The U.S. market has "anti-fragile" characteristicsThere are growing concerns that the policies of the Trump administration may harm the U.S.'s ability to attract global capital, as the U.S. recently experienced a simultaneous decline in stocks, bonds, and currency. However, on Monday, Mnuchin refuted the notion of selling off America, stating that the U.S. market possesses "anti-fragile" characteristicsFor example, over the past century, the U.S. market has experienced the Great Depression, two World Wars, the "9/11" attacks in 2001, the global financial crisis from 2008 to 2009, the COVID-19 pandemic, and the subsequent surge in inflation, all of which rebounded afterward.Progress on Trade AgreementsAccording to Securities Times, Trump stated on Sunday that the U.S. is in talks with multiple countries, including China, regarding trade agreements, with the main priority in negotiations with China being to ensure a fair trade agreement. He expressed a more optimistic outlook on the prospects of reaching an agreement with China. Media reports indicate that Trump is open to reducing tariffs on imports of certain goods.On Monday, Bessent hinted to the media that the U.S. is "very close to reaching some trade agreements," with potential progress "as early as this week."Risk Warning and DisclaimerThe market carries risks, and investment should be approached with caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment based on this is at one's own risk