Serious Concerns over Trump Economy

This report just in from GOP-friendly Fox News concerning the Fed's reduction of the benchmark interest rate by 25 basis points, "citing weakening exports and low inflation."

==== Fox News Report ====
"Although household spending has been rising at a strong pace, business fixed investment and exports have weakened. On a 12-month basis, overall inflation and inflation for items other than food and energy are running below 2 percent ...

"The dot plot that accompanied the decision showed the FOMC's next move is expected to be a rate hike. Meanwhile, the summary of economic projections upgraded the 2019 forecast for GDP growth by 10 basis points to 2.2 percent, while predicting unemployment would be worse, at 3.7 percent, than previously expected."(1)
==== End ====

Despite the chest-pounding in the White House over the "booming economy," economists continue to worry about signs of economic slowdown. Last month, stocks reacted negatively to news of the notorious "2-10 rate inversion" in T-Bills, and today the Fed announced that it will likely resume balance sheet growth(2), apparently as a hedge against a potentially weakening economy.

The news could be very bad for the momentum of the President's reelection juggernaut. A recent ABC News/Washington Post poll also found that 60 percent of Americans believe a recession is somewhat or very likely to happen sometime over the next year.(3) As news of the economic damage being done by the President's trade war with China becomes more widespread(4), more potential voters are looking for someone besides Trump to be their banner carrier.

As my readers know, I believe the solution to China's trade dominance and currency manipulation is to open new trade markets around the world, eliminating the lingering results of the unfair trade advantages the United States gave to China with "Most Favored Nation" trading status. Freedom, not more government control, is the solution to our economic woes.

www.armstrong2020.com

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Footnotes
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(1) https://www.foxbusiness.com/economy/federal-reserve-system-interest-rate-cut-september-2019
(2) https://www.cnbc.com/2019/09/18/powell-says-its-possible-the-fed-will-have-to-resume-balance-sheet-growth.html
(3) https://fivethirtyeight.com/features/whats-going-on-with-trumps-approval-rating/
(4) https://www.foxbusiness.com/…/u-s-china-trade-war-fedex-hurt