Stock Market Is Tumbling - Who's to Blame? 📉
Trump and the economy
Trump has presided over several successful moments the American economy has experienced since the last recession. Besides a rallying stock market, the White House also scored a win with unemployment dipping to historical lows. 65% of Americans believe its an advantageous time to find a job.
Yesterday, the Dow Jones stock market index fell an unprecedented 600 points. Trump blamed the market's nosedive on the Federal Reserve (The Fed) for increasing interest rates, but others believe Trump is contributing to the problem.
TRUMP'S RIGHT TO ACCUSE THE FED:
Those who believe that Trump’s right to accuse the Fed believe the Fed is tanking the US economy by increasing borrowing costs. The idea of increasing interest rates is to intentionally restrict the rate of economic growth in order to avoid a catastrophe. Fringe outlets on this side hypothesis that the fed is politically biased against Trump, hence raising the rate multiple times early in his presidency.
TRUMP'S WRONG TO ACCUSE THE FED:
Those that believe Trump’s wrong to accuse the Fed cite past successes under the Fed’s guidance and explain that the Fed does not even control some of the interest rates that Trump is concerned with. This side believes the stock market tanked because of rising trade tensions, not interest rates.
Justified finger pointing?
The Fed put measures into place this year to temper the economy, but cannot receive definitive blame for recent market volatility. Fed intervention benefited the economy in 2008, but it’s too early to predict the outcome of its most recent moves.
Trump blaming the Fed
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