Wall Street had another very bad day yesterday. How bad? Well, the S&P 500 fell to its lowest level of the year, and the Dow Jones Industrial Average lost over 500 points, bringing its two-day losses to more than 1,000 points after a bad day last Friday.
Actually, yesterday’s very bad day is only a snapshot of what is officially a very bad month for Wall Street and a very bad year for the S&P 500. The Dow and S&P 500 are on track for their worst December since the Great Depression in 1931, down approximately 7% so far for the month. And the S&P 500 is down over 4% for the year.
Meanwhile, the Federal Reserve is holding its last policy meeting of the year and will likely be announcing an increase in interest rates tomorrow due to economic uncertainty surrounding Trump’s trade war and a shaky global financial market.
So, it should come as no surprise that Trump spent time on Twitter yesterday spreading fake news about the imaginary success of his economic policies while simultaneously criticizing the Feds for tomorrow’s likely interest rate increase.
It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!
— Donald J. Trump (@realDonaldTrump) December 17, 2018
Trump’s attack on the Feds is not new. When the stock market’s 2018 gains were wiped out in October, Trump blamed Fed Chairman Jerome Powell, calling the man he appointed to the job “the biggest threat” to his success. He also issued a warning at that time that he might fire Powell.
I should note here that shortly after the 2016 election and before Powell was appointed, Federal Reserve officials were very concerned about Trump’s economic policies and how they would likely lead to inflation and higher interest rates. Maybe, instead of blaming the Feds for being right, Trump could admit he was wrong and end the trade war.
Yeah, like that’ll ever happen.
Trump’s “no inflation” claim is a complete fabrication; inflation has been steadily rising since Trump’s inauguration when it was around 1%.
The reality is that his trade war has been a primary driver of inflation and has grown to become the true “biggest threat” to the US economy. This threat so real that a majority of 134 business leaders recently surveyed — including executives from companies like Ford, Verizon, and Morgan Stanley — expect a recession to hit by the end of 2018. That’s two weeks, folks.
Meanwhile, Trump can’t really be bothered with the economy right now. He’s too busy tweeting threats against Saturday Night Live because they tell mean jokes about him.
David Leach is the owner of The Strident Conservative. His politically incorrect and always “right” columns are also featured on NOQReport.com.
His daily radio commentary is distributed by the Salem Radio Network and is heard on stations across America.