Trump admitted that he could cause stagnation, but he did not want depression, according to WSJ

President Donald Trump wanted to avoid sending the economy to depression through his controversial plan for definitions, according to the Wall Street Journal.

Trump said separately that he was aware that his broad and sharp plan for the fees that were revealed last week could activate the economy into stagnation, but he did not want depression, according to Wednesday night report From paper, quoting people familiar with conversations.

Trump told the advisers that he was ready to accept “pain” on politics, as he told the person who spoke with him on Monday.

Economists are depression when the recession becomes more severe and requires high unemployment and contraction for a longer period. The United States has avoided them since the great depression in the thirties of the twentieth century – when unemployment reached 25 % – due to progress in monetary policy and financial policy, as well as programs such as FDIC.

While many economists began to predict the stagnation of the Trump tariff that paralyzed world trade, no one said that it would lead to depression.

The bond returns increased while the shares were expressed in the days before Trump, that it would retract some reprisal tariffs on Wednesday. It was a sharp return in the stock market, with S & P 500 On Wednesday it is registered The best day since 2008.

Kiven Haysit, director of the American National Economic Council, told CNBC on Thursday that the decrease in the bond market contributed to Trump’s decision. The return on the cabinet increased for 10 years overnight on Wednesday to 4.5 % on speculation that a large foreign holder like Japan or China was automatic bonds. The price of bonds move backwardly.

“Everything was progressing in an organized manner,” said Hasit on CNBC.Squawk box“There is no doubt that the treasury market yesterday made it that the decision that, as you know, has come the time to move, perhaps, perhaps more urgent. But it will happen. “

Trump also admitted the role of the investor’s concerns during the observations made after the decision on Wednesday.

“I thought people were jumping a little outside the line,” Trump said. “They were getting a little of the Libyan, a little afraid.”

The White House did not immediately respond to CNBC’s request to comment about Trump’s concerns to report depression.

Trump’s amendment driver was the increasing role of Treasury Secretary Scott Payette in advice on commercial policy, according to WSJ, who cited people close to the situation. The person who spoke with the president told the magazine that the number of countries that negotiate with the White House had made Trump open to switch.

Read the full Wall Street Journal report here.