WH: Trump Not Focused on Wall Street

Feb 07, 2018, 00:55
WH: Trump Not Focused on Wall Street

The Dow Jones Industrial Average saw its steepest ever one-day point drop, wiping 4.6 per cent off the value of America's 30 largest companies to finish at 24,345.75, havingat one point plummeted almost 1,600 points to a low of 23,923.88. "Un-American. Somebody said, 'Treasonous.' I mean, Yeah, I guess, why not", the President said.

The insane stock market isn't dampening Treasury Secretary Steven Mnuchin confidence in the nation's economy.

White House spokesman Raj Shah, in an adjustment to the administration's message on stocks, told reporters aboard Air Force One en route to Trump's speaking event in Ohio, "Look, markets do fluctuate in the short term". You might have heard about them from President Trump.

While there could be various factors behind the market's volatile plunge the last several trading days, Trump has frequently credited himself for the market going up, seemingly with little regard for the fact that it can also move in the other direction.

But for Trump, who has constantly boasted about nearly daily record highs on Wall Street since his election and told Americans that he alone is responsible for their healthy 401 (k) balances, the mismatch was even more pronounced. For a year, he took credit for stock market gains that were the continuation of a nine-year bull market (a market he had called a "bubble" before assuming the presidency).

Including boasts he has made in speeches, he has celebrated stock market gains roughly 100 times.

President Donald Trump has repeatedly touted the strong stock market performance since his election victory as key proof of his success.

"I believe the stock market from that level, the initial level, would have been down close to 50 percent", he said.

In Illinois, reality is catching up with Trump, and Republicans, in a less amusing way. The White House had dubbed it the "Trump bump". But what goes up inevitably must come down.

This prompted fears about an increase in inflation, meaning the Federal Reserve would have to raise interest rates to control it, prompting traders to ditch shares. Since stocks tend to attract the wealthiest of Americans, highlighting rampaging stock values always seemed an odd way for him to connect to the "forgotten men and women", who helped put him in the White House.