CITIC Securities: Trump plays the "bad cop," Bessent plays the "good cop."

ChainCatcher news, according to Jinshi Data reports, Citic Securities research report states that on July 14 local time, U.S. President Trump made remarks in an interview that shocked the market, while U.S. Treasury Secretary Mnuchin's interview calmed the market. The research report believes that Trump's "bad cop" role disturbing the market combined with Mnuchin's "good cop" role stabilizing the market is the "clear routine" of "TACO trading" in a news-driven market led by Trump.

On issues such as Section 899, U.S.-Japan tariff negotiations, and the potential dismissal of Powell, Trump's remarks have brought negative impacts to the market. Subsequently, Mnuchin has made favorable statements and actions for the market: he called on the U.S. Congress to remove Section 899 from the OBBBA, expressed optimism about reaching a U.S.-Japan tariff agreement before August 1, and persuaded Trump not to dismiss Powell.

Mnuchin has played the role of a market spokesperson for the Trump administration. In the face of Trump's sudden "bad news" as the "bad cop," it is important to pay attention to Mnuchin's views on related events as the "good cop," as his remarks may trigger the moment for "TACO trading."