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A few days after taking office, Trump signed an order to lower regulation and end the creation of new rules. Since then, he has taken various other measures to reduce regulations, which Republicans and the business community have widely applauded.
The anticipation of tax cuts and, as a result, corporate profits, boosted stocks throughout 2017. In December, the Republicans adopted a plan to lower rates of interest. taxation of companies and bridging companies and to temporarily reduce the rates of most individuals. Trump has repeatedly asserted that the law would spur growth in employment and GDP – and would help actions in the process.
The script has switched this year. February has been a difficult month for the stock markets, in part because of rising interest rates and a more aggressive Federal Reserve policy.
Shortly after, Trump began its policy of imposing import tariffs to pressure allies to enter into new trade agreements. He first imposed duties on steel and aluminum. Then, Washington and Beijing began imposing a series of increasingly important tariffs, with the Trump government recently imposing 10% tariffs on 200 billion dollars worth of Chinese goods last month. They reach 25% by the end of the year and Trump is considering another tariff of $ 267 billion.
The trade dispute has raised concerns about a growing economic war that could drive up costs for businesses and consumers and hurt economic growth. Trade negotiations between the United States and China are at a standstill. The Trump administration wants Beijing to come up with a specific proposal to end the so-called IP theft prior to the start of the negotiations, which complicates any effort to advance trade.
While markets have reacted badly to the Fed's three interest rate hikes this year, the president has increasingly criticized the politically independent central bank. In an interview with the Wall Street Journal this week, he said "very dissatisfied with the Fed because [President Barack] Obama had zero interest rates. "
Trump added that he may have regretted appointing Fed Chairman Jerome Powell.
Trump's chief economic advisor, for his part, has said his fears over Democrats' majority in the House have led to a market pullback more than concerns over slowing global economic growth and rising interest rates. d & # 39; interests. On Tuesday, National Economic Council director Larry Kudlow told reporters: "I think the stock market is worried that Congress will change and reverse these policies for growth."
Many market experts believe that the October carnage will be short-lived. Trump will probably start talking about the stock market again when the pain stops.
Take his last cheering tweet on the stock market. He arrived on October 16, when major indices rose more than 2 percent after a week of carnage.
First, he noted that the Dow Jones had gained 548 points.
The next day, Trump mentioned what he said was a quote from "Fox & Friends," a morning TV show that the president frequently watched and who covered it favorably. "Network News gave zero coverage to the big day that the stock market had yesterday," he wrote, apparently quoting an unidentified speaker.
The Dow has fallen 3.7% since October 17th. The President has not tweeted about the market since.
– Additional report by Fred Imbert of CNBC
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