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The American stock market is in free fall after President Donald Trump announced his rates encompassing earlier this week, and Trump is trying to express the stock market expressly – at least according to a video he republished on social networks on Friday riddled with inaccuracies.
The S&P 500 is down more than 13% since Trump won the elections in November, with most losses … More
Key facts
Friday morning, Trump republished a link on his social platform of truth to the one-minute video that opened: “Trump is blocking on the stock market … this month, but he does it on purpose.”
The short video, which promotes several poorly informed lies or claims, offers an overview of Trump’s thought behind its new prices largely has been largely purged among economists and through Wall Street, leading a bloodbath out of the market, while the S&P 500 index believed 4.8% on Thursday, the worst decrease of almost five years, followed by an even more painful loss on Friday.
According to the video, which goes back to an article on March 15 from a Tiktok account with less than 18,000 subscribers, Trump makes a “wild failure movement” and plays a “secret game” to “force” the federal reserve to reduce interest rates and refinance a piece of the 36 dollars of the federal government of the debt “very inexhaustively”.
At the credit of this theory, yields for American cash tickets, which are a starting point for loans between mortgages to companies’ obligations, collapsed this week, because the 10 -year reference treasure fell more than 10 basic points to a six -month less than 3.9% purchasing power and much lower purchasing power from tariffs.
The lower yields of the Treasury can also be obtained in a much less damaging way, by restoring the confidence of fixed income investors in the budgetary health of the federal government thanks to more austere spending – a narrative shaped the first days of the second mandate of Trump, when the Ministry of Elon Musk’s effectiveness contributed to increase the confidence that the United States would attach to its debt in balloon.
And the 10-year-old treasure is still far from being a historically cheap level, because it was below 3.6% as recently as September and less than 3.5% from 2012 to 2021, and yields increased again on Friday afternoon to more than 4% on Friday afternoon.
News
Trump directly called the Fed to lower the target rate of federal funds in an article on Friday on social networks, writing: “It would be an ideal moment for the president of the Fed, Jerome Powell, to reduce interest rates.” Trump has repeatedly demanded the politically independent Fed to acquiesce his lower rate requests dating from his first presidential mandate. Powell did not seem interested in responding to Trump’s requests in remarks prepared on Friday, observing: “Although uncertainty remains high, it now becomes clear that pricing increases will be considerably greater than expected.
Does the stock market only benefit the rich?
The video that Trump has republished said it “was gaining in short -term wealth and puts it back to the middle class by lower prices”, explaining “94% of all shares are only held by 8% of Americans”. But this notion Robin Hood-Eque to take rich to enrich the least wealthy is wrong. On the one hand, economists’ consensus massively supports the idea that the president’s prices will lead to higher consumer prices. Statistics on the ownership of shares seem to be referring to a study of the federal reserve in 2023 that 93% of the market value held by the richest 10% of Americans, but this does not mean that the remaining 90% is not directly affected by stock market losses. According to Gallup, around 61% of Americans have actions, and the majority of Americans have IRA or 401 retirement accounts (K), according to the census office.
No, Warren Buffett did not praise the “ economic movements ” of Trump
Legendary investor Warren Buffett thinks that Trump makes the “best economic movements” in five decades, according to the video shared by Trump, but Buffett did not make such comments. The Buffett company, Berkshire Hathaway, confirmed that the billionaire had made no flattering remark in a declaration of Friday, calling the “comments which allegedly made by Warren E. Buffett … False”. The most recent comments of Buffett on Trump came in an interview with CBS News last month during which he criticized the prices, calling them “an act of war” and a “tax on goods” paid by consumers.
Tangent
Trump celebration of action losses is a major change compared to the way in which he has considered equity market yields as a barometer of presidential success in recent years. “If we lost this election, I think the market would descend into the tubes,” said Trump in October, boosting later that “the market crossed the roof” and the stock market is “very important”, also celebrating yields during its first mandate as “incredible realization”. The S&P is down approximately 13% since the November elections.
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