policy
Washington – As a presidential candidate, Donald Trump promised an economic “boom like no other”.
But eight weeks after his presidency is Trump Wean to rule out a recession – A striking change in the sound and the message for a man who rode widespread economic dissatisfaction with the White House by promising “making America affordable again”.
His comments come when the stock market fell – the S&P 500 fell back by 2.7% on Monday after they had dropped by 3.1% last week – and the managing directors are frightened by uncertainty about its tariffs. Even some Republicans who fear retaliation when they cross Trump have started to make concerns about his taxes.
The moment is a fundamental challenge for Trump, a showman who makes absolute and comprehensive promises that inevitably encounter the reality of governance.
The economy, which Trump inherited, was in a solid form, with low unemployment, moderate growth and an inflation rate, which is still higher than the Federal Reserve, but had decreased considerably. But the uncertainty that his guidelines were injected into the prospects is a terrifying contrast to the picture that Trump painted on the campaign path.
“We will start a new era of increasing income,” said Trump in October at a rally. “Spring wealth. Millions of new jobs and a booming middle class. We will boom as if we have never drilled before. “
This vow of creating an economic boom has become conflict with the most popular economic instrument of the president: tariffs. He also promised this during the campaign and, as economists warned, the main drivers of the cloudy economic outlook in the country. Forecasts by JP Morgan and Goldman Sachs say that a recession has become more likely next year due to Trump’s tariffs.
So far, the president seems to try to reduce expectations. In an interview that was broadcast on Fox News on Sunday, Trump was decreased when he asked Maria Bartiromo if he was expecting a recession this year.
“I hate to predict such things,” he said. “There is a time of transition, because what we do is very big. We bring prosperity back to America. That is a big deal. And there are always periods of, it takes a little. It takes a little time, but I think it should be great for us. “
In his speech last week, Trump admitted to a joint congress meeting that would cause tariffs “a little disorder”. But he said: “We agree. It won’t be much. “
Even if the markets are falling, Revolt expresses the world leaders and the managing directors, Trump has made it clear that he has no plans to shift his tariff strategy. He imposed broad tariffs in Canada, Mexico and China last week and swore to get more in front of the next month. But Trump, who has one People to change positions from a moodConversely, a few tariffs and could do this again.
“Look, our country has been torn down for many decades for many decades, and we are no longer torn down,” said Trump in Fox News.
Trump, who called the opening bell on the New York Stock Exchange in December monitor the stock exchange. In his first term, he regularly pointed out a wealthy stock market as proof of his success. Many managing directors gathered behind Trump’s campaign because they were convinced that he would prioritize their economic interests, but now priority Some managing directors And Small business owner complain about the economic pain that will bring his tariffs. The president can hear these concerns directly from the top CEOs if he meets with members of the Business Roundtable on Tuesday.
On Monday, when the stock exchange had its worst day since December, the White House official tried to redirect the conversation.
“Since President Trump was elected, the industry leaders have reacted to the American first economic agenda of Zöllen, Deregulation of President Trump and unleashing American energy with trillions of investment obligations that create thousands of new jobs,” said Kush Desai, a spokesman for the White House. “President Trump delivered historical work, wages and investment growth in his first term in office and will do so again in his second term.”
In the past few days, Trump’s top consultant has tried to calm the markets and managing directors. Minister of Commerce Howard Lutnick said on Sunday that there was no chance of recession. Finance Minister Scott Bessent was not so relentless and said on Friday that there would be a “natural adaptation” because the economy goes through the support of the state spending.
“The full press of the President and his surrogacy this weekend signals that they are strongly under pressure from the people they hear-the share market, the Republican legislator and the managing directors,” said Kate Kalutkiewicz, Senior Managing Director at McLarty Associates, an advisory company.
Kalutkiewicz, who worked in the first Trump office in the National Economic Council, said that the president and his adjutants’ comments indicate that they do not plan to change the course in response to the growing chorus.
Stephen Moore, an economist at the Heritage Foundation, which is a former Trump former business advisor, said the topic of the president was the time. Moore said Trump should have been waiting for the congress to pass tax cuts to introduce tariffs.
“Let’s boom the economy again and then talk about tariffs,” he said. “I think there must be a certain priority shift.”
Senator Ron Wyden, D-ORE., Who is the ranking member of the Senate Financing Committee, said that the Trump government’s approach to tariffs was “poison” for the US economy.
“The chaos that you create every day is basically an anchor that is connected to the American economy, and more and more of our workers will pull under water the longer,” he said in an interview. “We try to stop them.
The question that depends on Washington is how long Trump can create a declining stock market – and the resulting negative media reporting that accompanies it.
“I don’t know,” said Moore. “It’s a good question. I am sure that the president is concerned about the losses on the stock exchange in the last 10 days. We are all. “
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