Do Trump’s actions matter for the stock market or the larger economy?

Paul Krugman in the New York Times: “The truth is that most of the time, presidential actions don’t matter much for the economy; short-term economic management is mainly up to the Fed. But when bad things happen, we do need the White House to step up. In 2008 and 2009, it mattered a lot that officials of both the outgoing Bush administration and the incoming Obama administration responded competently and intelligently to the financial crisis.

“Unfortunately, there’s no reason to expect a comparable degree of competence if something goes wrong again.”

One thought on “Do Trump’s actions matter for the stock market or the larger economy?

  1. Megan McArdle opined: “Which brings us to the deepest mystery of all: Why were investors so optimistic in the first place?

    “I asked a number of financial professionals that question back when the bull market was still charging ahead. After all, Trump had promised tariffs, which large, publicly traded corporations tend not to like; he had promised immigration restrictions, which such companies really don’t like; and finally, he had promised lots of uncertainty, which those firms hate with the white-hot fire of a thousand suns.”

Leave a Reply

Your email address will not be published.