Trump used to brag and take credit for the stock market daily, but the president has gone quiet as the market is dropping and his trade war is one of the reasons why.
CNBC’s Ron Insana told Ali Velshi of MSNBC, “A combination of things. As you rightly point out, the trade war will slow the economy. China has slowed down dramatically. Their markets down 30% from the recent peak. We are seeing weakness in the China economy, the global economy, and we have seen housing and auto go lower amid fears those two sectors at home slow down. You add to that rising rates, worries about a trade war, price pressures, tariffs put prices higher for a lot of goods, and wide number of influences that have upset the market. The trade war could affect the third quarter — third-quarter profits that they report tomorrow. If those are disappointing, another factor that could restrain stocks in the days and weeks ahead.”
Trump is blaming the FED, but dropping market is also his mess
Everyone knew that the Federal Reserve was going to be hiking interest rates, because they are worried about inflation, and the economy overheating. Interest rates were too low, so Trump’s blaming of the Federal Reserve is disingenuous, because while the market was going to react negatively to interest rate hikes, Trump and the Republican Party made the situation worse by cutting taxes for corporations, and launching a trade war that is impacting the domestic and global economy.
The trade war is backfiring, and instead of taking ownership of his boneheaded policies that are harming the economy, Trump is looking for someone else to blame. It is going to be hard for Trump to claim that America is winning when the country is staring down a recession in two years, but that is where things are heading in part due to Trump’s trade war.
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