Today's pain, tomorrow's gain: Trump on trade policies with China
Aug 22 2019
Major domestic and global stock indexes have swung considerably in recent weeks as investors react to subpar economic indicators and ongoing turbulence from the Trump administration's trade war with China.
But if Congress and successive presidents routinely cut the Social Security payroll tax, this will inevitably raise questions about whether general revenues are sufficient to offset the enormous loss of funds for Social Security and whether the program itself must be cut to make up the difference.
The Trump administration has expressed optimism about the strength of the USA economy amid signs of slowing growth and trade tensions with China.
Trump's seemingly misguided comments about a possible recession came alongside growing fears that the United States economy is headed for a substantial downturn.
The Republican president indicated that he had no choice but to impose the tariffs that have been a drag on USA manufacturers, financial markets and, by some measures, American consumers. "The key is to resolve the issues through dialogue", ministry spokesman Geng Shuang told reporters in Beijing on Wednesday.
Trump was clear that he didn't think the U.S.is at risk of a recession and that a boom was possible if the Federal Reserve would slash its benchmark interest rate.
Trump says his administration is looking at a cut in the capital gains tax when investors sell assets. "In fact, if the Fed would do its job, I think we'd have a tremendous spurt of growth, a tremendous spurt". "I'm not talking about doing anything at this moment".
Publicly, the president continues to strike an optimistic tone about the strength of the USA economy and has sent his top economic aides on television to further amplify the White House message. -China trade war and Germany's own recession warning, plus Britain's Brexit chaos, and suddenly the "R" word has become a regular part of the conversation for hopeful critics of the president. The market reaction suggested a recession might be on the horizon and led Trump to delay some of the tariffs that were slated to begin in September, though 25% tariffs are already in place for $250 million in other Chinese goods.
"We're, right now, the No. 1 country anywhere in the world by far as an economy", Trump told press during a White House meeting with Romanian President Klaus Iohannis. "I am doing this whether this is good or bad". But growth is slowing, stock markets have swung wildly in recent weeks on recession fears, and indicators in the housing and manufacturing sectors have given economists pause.
Only two per cent of the survey's 226 respondents predicted a recession this year, but 38 per cent expected a downturn to hit in 2020 and 34 per cent in 2021, according to the polls from the National Association for Business Economists. He continued by saying that if the Federal Reserve would do its job by lowering interest rates "you would see a burst of growth like you've never seen before".
That stood in contrast with comments the president made last week, the president branding Fed chief Jerome Powell "clueless", and tweeting in all caps: "CRAZY INVERTED YIELD CURVE!". It is just a word that certain people, I am going to be kind, certain people and the media are trying to build up because they would love to see a recession. "That's a big if".