President Trump pointed out what can only be termed the plain and simple truth on Tuesday, telling reporters at the White House that the liberal media was responsible for creating chaos in the stock market with their grim predictions of a looming recession. Noting that the underpinnings of the economy were still strong and headed in the right direction, Trump took umbrage with the recent spate of nearly-gleeful articles that predict a recession is just around the corner.
“I think the word recession is inappropriate because it’s just a word that certain people – I’m going to be kind – certain people in the media are trying to build up because they’d love to see a recession,” Trump said. “We’re very far from a recession.”
Trump said that if the economy was in any danger of a slowdown, the blame could be placed with the Federal Reserve.
“If the Fed would do its job, I think we would have a tremendous spur of growth,” he said.
He again criticized Federal Reserve Chairman Jerome Powell for raising interest rates too quickly, saying it was “very bad to do” that, especially when you aren’t sure about the longterm effects of a protracted trade war with China.
“You have to be proactive,” Trump said, calling on the Fed to deliver another interest rate cut before panic can set in among investors and consumers.
Trump said that while his White House was always interested in looking for ways to cut taxes, that interest wasn’t necessarily connected to fears of an impending recession.
“I would love to do something on capital gains, we’re talking about that, that’s a big deal, it goes through Congress,” he said. Payroll tax is something that we think about and a lot of people would like to see that, and that very much affects the workers in our country and we have a lot of workers. Whether or not we do it now or not — it’s not being done because of recession.”
It remains to be seen whether we’re headed for a recession or even a slower-growth period, but even if we are, that’s the natural ebb and flow of the economy. You can’t just grow, grow, grow forever, and while it’s politically unfortunate if we decline over the next year, it’s inevitably going to happen at some point. The role of the president in these circumstances is to guide us through the down period as best he can, with the best policies possible. Unfortunately, with the Democrats (and the media) chomping at the bit to take advantage of any downturn, Trump can’t count on much help from Capitol Hill.