President Trump suggests re-election will halt recession

President Trump suggests re-election will halt recession

The inversion of the USA yield curve, known as Wall Street's original fear gauge, for the first time since 2007 was another widely quoted sign that the U.S. economy faced the prospect of a contraction, possibly as early as next year, further fuelling investor fears. Investors are anxious by signs that economies all around the world may already sliding toward recession.

Of course, inverted yield curves aren't a crystal ball formula for forecasting a downturn. Century, was only elected a President again, in the last two calendar years of his first term in office, a recession occurred: William McKinley in the year 1900.

Stephen Moore, an economist at the Heritage Foundation, told CBN's Faith Nation he doesn't think there will be a recession, but he acknowledges the economy has slowed down.

The President's trade war with China has been weighing on stocks in recent weeks, but the market rallied Tuesday after the Trump Administration delayed tariffs on cell phones, laptops and other gift items to support a healthy holiday shopping season. "And the second factor has been the Fed which, in my opinion and Donald Trump's opinion, has been way too tight".

The president said the "spread" of interest rates between the US and its competitors "is way too much as other countries say THANK YOU to clueless Jay Powell and the Federal Reserve".


Investors dumped shares and bought safer government bonds, adding to the sense of panic that has grown steadily following Donald Trump's threat this year of extending tariffs to all Chinese exports to the US.

"We are doing this for the Christmas season just in case some of the tariffs would have impacted United States customers", Trump told reporters this week. Before the lunch, he tweeted the world: "The Fake-News media are doing everything they can to overthrow the economy, because they think that this will be bad for me and my re-election". From his golf club in New Jersey, where he is vacationing this week, Trump has called a number of business leaders and financial executives to sound them out - and they have provided him a decidedly mixed analysis, according to two people familiar with the discussions who spoke on the condition of anonymity because the conversations were confidential.

Ultimately, it will be in China's best interests to make a deal, Moore concluded. "Let them work humanely with Hong Kong first!" The dollar is too strong, and that has caused interest rates to go lower. "And even though the Trump economy is rock solid, it slowed us down a bit because of those higher interest rates".

"China is not our problem... our problem is with the Fed", Trump tweeted. "I think it's really important that we get a deal with China that's in America's interest".

"The yield curves are all crying timber that a recession is nearly a reality and investors are tripping over themselves to get out of the way as economic recession hurts corporate earnings and stocks can drop as much as 20 percent", Chris Rupkey, chief financial economist at MUFG Union Bank, said Wednesday. Larry Kudlow says the economy will perform well in the second half of 2019.

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