A crashing stock market is not part of President Donald Trump’s intentional strategy, White House National Economic Council director Kevin Hassett told ABC’s This Week on Sunday. This statement came after Trump shared a link to a video on his social media platform, Truth Social, which claimed the president was intentionally causing the markets to plummet as part of a broader economic strategy.
The video, originally posted on TikTok in March, was shared by Trump on April 4, two days after he announced new tariffs. The video, which suggested Trump was purposefully crashing the market, claimed, “Trump is crashing the stock market by 20% this month, but he’s doing it on purpose. … And it could make you rich.” The video further explained that such a move would help “push cash into treasuries, which forces the Fed to slash interest rates in May… It also weakens the dollar and drops mortgage rates. Now it’s a wild chess move, but it’s working.”
White House Response to Market Concerns
When asked repeatedly whether Trump had intentionally orchestrated a market selloff, Hassett responded, “He’s not trying to tank the market. He’s trying to deliver for American workers.”
“It is not a strategy for the markets to crash,” Hassett added.
The president’s retaliatory tariffs, rolled out on Wednesday, led to a significant market selloff, spurred by fears of a protracted global trade war and a looming recession. The Dow Jones Industrial Average declined around 2,231 points, or 5.5%, on Friday alone, marking its largest drop since June 2020. The S&P 500 fell nearly 6% on Friday, following a 4.8% plunge on Thursday. The tech-heavy Nasdaq Composite dropped almost 12% in the two days after the tariff announcement and entered bear market territory.
Author’s Opinion
While President Trump and his advisors may deny any intentional efforts to destabilize the stock market, the persistent rollercoaster of financial turmoil suggests that the broader economic strategy may need to be reassessed. Rapid market fluctuations, particularly linked to tariff announcements, show that economic actions have far-reaching consequences. It’s essential for leaders to consider the long-term effects on consumer confidence and market stability, rather than focusing on short-term political or strategic gains.
Featured image credit: FMT
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