🔴 Website 👉 https://u-s-news.com/
Telegram 👉 https://t.me/usnewscom_channel
On Sunday’s Maria Bartiromo show, President Donald Trump refused to rule out a recession this year amid a “period of transition” in the economy; on Monday the Dow dropped 2%, the Nasdaq 4%.
There’s a connection here, but not strict causation.
Markets are nervous over Trump’s tariffs; that the kick-in is on-again/off-again adds to the uncertainty (which traders really hate).
But the US economy would be in “transition” no matter who occupied the Oval Office right now, and some correction was coming.
For all the optimism on how AI can boost US productivity and so fuel rapid economic growth, the “Magnificent 7” stocks (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla) had grown overpriced — and, since they account for nearly all recent stock market gains, inevitably brought the indices down with them.
Fact is, we’ve been in “transition” at least since the mortgage meltdown of 2008 — nearly a decade of zero interest rates (great for financial speculators, not so good for working folks) and a global pandemic, not to mention political instability as first one party and then the other earns the voters’ repudiation.
And the Biden years left Uncle Sam running $2 trillion-a-year deficits, artificially goosing the economy (albeit only to sluggish growth) and the markets in a scam that can’t keep going.
Plus the Federal Reserve with an eye on the November election last year paused its campaign to wring out Bidenflation, so that’s still hanging over us, too.
Yes, amid the uncertainty we know Trump wants to boost American manufacturing and the energy sector, indeed build US leadership in every sector — but how?
Is the crypto stuff just a sideshow? Are tariffs a club to level the trading fields (and disengage with China), or a coming long-term burden on imports?
Right now, it’s an open question as to how and when Trump will renew the tax cuts he passed back in 2017, let alone the newer add-ons — so it seems the tariffs will kick in first, hence the markets’ angst.
To be clear, the president has a point when it comes to how Wall Street works these days.
“What I have to do is build a strong country. You can’t really watch the stock market,” he told Bartiromo. “If you look at China they have a hundred-year perspective. We have a quarter. We go by quarters.
“And you can’t go by that. You have to do what’s right. What we’re doing is, we’re building a tremendous foundation for the future.”
Tell us more, sir.
Just a week ago, Trump did a great job reassuring the nation about his first weeks in office, covering all fronts from social policy to foreign affairs.
No, the country doesn’t need a single-quarter strategy right now. But if the prez wants America to buckle up for a wild ride, he — or his team, with a unified voice — owes another speech explaining the long game on the economy.