Trump’s Misguided Economic Policies Threaten Financial Stability

Former President Donald Trump has once again demonstrated his lack of understanding of economic principles by suggesting that the Federal Reserve should lower interest rates to accompany his proposed tariffs. In a post on Truth Social, Trump proclaimed, “Interest Rates should be lowered, something which would go hand in hand with upcoming Tariffs!!! Lets Rock and Roll, America!!!” This statement reveals his fundamental misunderstanding of how inflation and interest rates interact, undermining confidence in economic policy.

Trump’s comments come in stark contrast to the views of Federal Reserve Chair Jerome Powell, who indicated that policymakers are not in a rush to lower rates as they assess the current inflation trends. This discrepancy highlights how Trump’s economic rhetoric is not only out of touch but detrimental to national financial stability. Economists widely recognize that lowering interest rates in tandem with tariffs could exacerbate inflation, a concept that seems lost on Trump.

This isn’t the first time Trump has flip-flopped on monetary policy. Shortly after taking office, he called for immediate rate cuts, yet soon after he praised the Fed’s decision to maintain rates. Trump’s erratic calls for policy shifts reflect not just a lack of expertise but also an alarming tendency to prioritize political gain over sound economic practices. The implications of his suggestions could erode the foundations of responsible fiscal management.

Current market indicators show that the Fed is unlikely to make any cuts until at least mid-year, with many analysts skeptical about any reductions at all this year. Additionally, just after Trump’s announcement, the Bureau of Labor Statistics reported a surprising increase in consumer prices, which raises further doubts about the feasibility of his proposed economic strategies. Trump’s reliance on gimmicky tariff policies and misguided monetary suggestions only serves to create further instability in the markets.

The reality is that Trump’s economic approach, driven by impulsivity and a fundamental misunderstanding of market dynamics, poses a significant risk to American democracy and financial well-being. His partnership with corporate elites like Elon Musk emphasizes a concerning alignment of interests that seeks to exploit national policies for personal and corporate benefit. It’s critical for the future of the American economy that sound economic principles prevail over Trump’s reckless ideologies.

(h/t: https://www.cnbc.com/amp/2025/02/12/trump-says-interest-rates-should-be-lowered-to-go-hand-in-hand-with-his-tariffs.html)

Trump’s Tariff Suspension Is a False Narrative as Biden’s Border Agreements Take Center Stage

Donald Trump has agreed to temporarily suspend the imposition of 25% tariffs on Canada and Mexico for 30 days, portraying it as a diplomatic success despite the reality that both nations had been actively addressing border security and drug trafficking concerns prior to his claims. The false narrative he constructs revolves around negotiations with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum, completely disregarding the pre-existing agreements made during Joe Biden’s presidency when Mexico deployed troops to its northern border under Biden’s request.

This suspension of tariffs, which comes after talks with both leaders, is merely a facade to cover Trump’s failure to address the ongoing realities of U.S. foreign trade dynamics. In stark contrast, Trump did not extend the same courtesy to China, where a 10% tariff on imports has taken effect, illustrating a continuation of his reckless trade policies. The resulting retaliatory tariffs imposed by China are a significant escalation, exposing the damaging consequences of Trump’s misguided approach to international trade.

The superficial diplomacy exhibited by Trump does not reflect an understanding of the complex economic environment, as acknowledged by economists who warn that tariffs inevitably raise prices on goods like automobiles and food, adversely affecting American consumers. Trump’s framing of these tariffs as beneficial for American economic growth ignores the reality that they are likely to result in heightened costs of living, exacerbating the strain on everyday Americans already struggling in a post-pandemic economy.

Trump continued to mislead the public by taking credit for certain border agreements that were initiated by the Biden administration. For instance, the Mexican government had previously agreed to send troops to its border to manage migration in 2019, making Trump’s claims of success not only misleading but also indicative of an oppressive regime’s tactics to manipulate public perception.

The aftermath of Trump’s trade decisions has created a climate of uncertainty, as Canadian leaders warn of looming threats despite the brief respite from trade hostilities. Both Canada and Mexico remain vigilant, understanding that Trump’s unpredictable behavior may very well lead to further confrontations down the line. This situation underscores the broader issue of Trump and the Republican agenda, which consistently aligns with the interests of the wealthy elite while undermining the principles of democracy and economic equity in America.

(h/t: https://www.bbc.com/news/articles/c87d5rlee52o.amp)

Trump Misleads Public on Border Closure Deal with Mexico

Donald Trump recently boasted about a conversation with Mexican President Claudia Sheinbaum, claiming they struck a deal to “effectively close the border.” This assertion, however, is misleading as Mexico has already been implementing strict measures to manage migration.

In a post on Truth Social, Trump celebrated what he called a “very productive conversation,” suggesting that he had successfully pressured Mexico into taking actions that they were already doing. Sheinbaum confirmed their discussion focused on migration strategies, stating that caravans were not reaching the U.S. border due to Mexico’s enforcement measures.

While Trump positions this as a win, it conveniently ignores the fact that illegal migration rates have been declining due to the Biden administration’s enhanced cooperation with Mexico, a fact Trump fails to acknowledge. His claim follows a series of threats to impose tariffs on both Mexico and Canada, which raises questions about the sincerity of his negotiations.

The Trump administration’s focus on a border wall and aggressive immigration policies has been criticized as a façade to distract from more pressing issues. By misrepresenting the success of his conversations with Sheinbaum, Trump appears to be attempting to reclaim a narrative of strength on immigration, despite the reality of the situation being far less favorable for him.

In essence, Trump’s declaration of victory is less about genuine policy achievements and more about political posturing. His rhetoric continues to exploit immigration fears for political gain, which undermines the complex reality of border management and international cooperation.

(h/t: https://www.wbrz.com/news/trump-speaks-with-mexico-s-president-claims-an-agreement-to-effectively-close-the-border/)

Trump hits Senate for giving impeachment ‘credibility’ by holding trial

President Trump on Sunday tweeted that Republicans risked lending credibility to the impeachment inquiry brought by the House by holding a trial in the Senate.

The president said any proceedings in the Senate would be based on “no evidence,” and appeared to urge Senate Republicans to reject the idea of holding a trial at all.

“Many believe that by the Senate giving credence to a trial based on the no evidence, no crime, read the transcripts, “no pressure” Impeachment Hoax, rather than an outright dismissal, it gives the partisan Democrat Witch Hunt credibility that it otherwise does not have. I agree!” Trump tweeted.

Trump spent much of Sunday tweeting about the upcoming Senate impeachment trial, which, he wrote in one message, “should not even be allowed to proceed.”

“Why should I have the stigma of Impeachment attached to my name when I did NOTHING wrong?” he added in another tweet. “Read the Transcripts! A totally partisan Hoax, never happened before. House Republicans voted 195-0, with three Dems voting with the Republicans. Very unfair to tens of millions of voters!”

Senate Majority Leader Mitch McConnell (R-Ky.) and Speaker Nancy Pelosi (D-Calif.) have battled for weeks over the scope of the Senate impeachment trial, with Pelosi holding firm in her demands for McConnell to guarantee that witnesses will be called before she presents the Senate with the House-passed articles of impeachment.

Last week it was reported that McConnell had signed on to a measure that would allow the Senate to dismiss the House articles of impeachment without a trial.

[The Hill]

Trump complains he didn’t get Nobel Peace Prize days after threatening to commit war crimes

President Donald Trump complained that he was not awarded the Nobel Peace Prize just days after he threatened to commit war crimes in Iran.

Trump spoke at a rally in Toledo, Ohio, on Thursday after walking back his threat to target Iranian cultural sites, which would constitute a war crime.

Trump complained at the rally about the 2019 Nobel Peace Prize, which was awarded back in October to Ethiopian Prime Minister Abiy Ahmed “for his efforts to achieve peace and international cooperation, and in particular for his decisive initiative to resolve the border conflict with neighboring Eritrea,” according to the Nobel Committee.

But Trump claimed that he was the one who actually saved the country.

“I’m going to tell you about the Nobel Peace Prize,” he said. “I’ll tell you about that. I made a deal, I saved a country and I just heard that the head of that country is now getting the Nobel Peace Prize for saving the country. I said, ‘What, did I have something do with it?’ Yeah, but you know, that’s the way it is. As long as we know, that’s all that matters.”


The Washington Post reported that this would be “news to Ethiopians,” noting that Trump “played no apparent role in the Eritrea peace deal.”ADVERTISEMENT

The House Foreign Affairs Committee said on Twitter that “Trump is confused,” suggesting that he confused the Eritrea peace deal with another deal between Ethiopia and Egypt regarding a new dam, which Washington helped move along.

A senior Ethiopian government official told the Associated Press as much.

“He was talking about Egypt and Ethiopia,” the unidentified official said. “President Trump really believes he avoided a war as such . . . but that was not the case.”

Trump has long grumbled about the Nobel Peace Prize, which was awarded to former President Barack Obama during his first year in office.

Trump claimed in May 2018 that “everyone thinks” he deserves the Nobel Prize for his efforts to negotiate with North Korea, which recently fell apart.

Trump later complained about Obama’s Nobel Prize during a speech in the Rose Garden last February.

“They gave it to Obama. He didn’t even know what he got it for. He was there for about 15 seconds and he got the Nobel Prize. He said, ‘Oh, what did I get it for?’” Trump complained. “With me, I probably will never get it.”

Trump also claimed last fall that the committee that gives out the awards was rigged against him.

“I think I’ll get a Nobel prize for a lot of things if they gave it out fairly, which they don’t,” he said during an appearance with Pakistani Prime Minister Imran Khan before turning his attention to Obama again.

“He had no idea why he got it, and you know what?” Trump asked. “That was the only thing I agreed with him on.”

Obama received the prize eight months into his presidency for his “extraordinary efforts to strengthen international diplomacy and cooperation between peoples.”

[Raw Story]

Trump Boasts of Stock Market In Wild Tweet: ‘HOW ARE YOUR 409K’S DOING?’

President Donald Trump touched on a series of topics in his Thursday morning Twitter statements, and in the most recent one, he declared that the stock market is soaring and everyone’s “409K’S” are doing great.

“STOCK MARKET AT ALL-TIME HIGH!” Trump tweeted in all-caps. “HOW ARE YOUR 409K’S DOING? 70%, 80%, 90% up? Only 50% up! What are you doing wrong?”

https://twitter.com/realDonaldTrump/status/1215285845336502272?ref_src=twsrc%5Etfw

Here’s a picture of the tweet before it got deleted:

Long story short, there’s no such thing as a 409k. 401k, sure. Not 409.

[Mediaite]

Trump takes credit for decline in cancer deaths. The American Cancer Society says he’s wrong

President Donald Trump insinuated in a tweet on Thursday that his administration played a role in the US cancer death rate hitting a record low in 2017. The American Cancer Society says that’s not true.

Trump’s tweet appeared to be referring to the findings of an American Cancer Society report released on Wednesday, which said the rate of people dying from cancer in the United States declined in 2017 for the 26th year in a row. Trump took office in January 2017. The report, published in CA: A Cancer Journal for Clinicians, said that the cancer death rate had fallen “continuously” from 1991 through 2017.

The report also found that from 2016 to 2017, the United States saw its largest-ever single-year drop in overall cancer deaths, a 2.2% decline spurred in part by a sharp fall in lung cancer deaths.Trump’s tweet on Thursday said, “U.S. Cancer Death Rate Lowest In Recorded History! A lot of good news coming out of this Administration.”

[CNN]

Trump Blames Obama for Iran Attack Then Takes Credit for Obama’s Accomplishments in Off-the-Rails Address to the Nation

After three years there were likely few Americans hoping for some form of comfort from President Donald Trump’s address to the nation Wednesday in the wake of Tuesday night’s attack by Iran on air bases in Iraq that host thousands of U.S. Military troops. And President Trump, true to form, did not offer any.

The President descended as if from heaven (photo above) onto a stage filled with his military generals and advisors,

Vice President Mike Pence, Secretary of State Mike Pompeo, and Secretary of Defense Mark Esper. A clear attempt to show strength which the administration apparently felt the Commander-in-Chief could not summon if he appeared on camera alone. A sad statement.

“As long as I’m president of the United States Iran will never be allowed to have a nuclear weapon,” Trump, out of breath, declared as he walked up to the podium, flanked by his men in uniform. He then said: “Good morning.”

President Trump was expected to give Americans hope and comfort, and a clear indication that they are safe from attack.

Instead, he tried to show strength through military might – with no suggestion diplomacy might be a better route.

And he lied.

A lot.

“The missiles fired last night at us and our allies were paid for with the funds made available by the last administration,” Trump claimed, blaming President Barack Obama in a speech watched around the world.

“Iran’s hostilities substantially increased after the foolish Iran nuclear deal was signed in 2013,” Trump claimed. (It was actually 2015.)

He added, “they were given $150 billion, not to mention $1.8 billion in cash.  Instead of saying ‘thank you’ to the United States, they chanted ‘death to America.’  In fact, they chanted ‘death to America’ the day the agreement was signed.”

Those billions belonged to Iran, and reportedly were less than the numbers Trump quoted. They were Iranian funds frozen which had been paid to the U.S. for arms never delivered. It is a frequent trump lie he tells at rallies over and over.

“Then, Iran went on a terror spree, funded by the money from the deal, and created hell in Yemen, Syria, Lebanon, Afghanistan, and Iraq,” Trump claimed  in his address to the nation – and to the world. “The missiles fired last night at us and our allies were paid for with the funds made available by the last administration.  The regime also greatly tightened the reins on their own country, even recently killing 1,500 people at the many protests that are taking place all throughout Iran.”

“The very defective JCPOA [the “Iran deal”] expires shortly anyway,” Trump said. That’s just false – another lie Trump often tells. Various parts expire between 2025 and 2030.

He claimed the JCPOA “gives Iran a clear and quick path to nuclear breakout,” which again is false.

After falsely blaming Obama for Iran’s attack he went on to take credit for Obama paving to road to energy independence.

“Over the last three years, under my leadership, our economy is stronger than ever before and America has achieved energy independence.  These historic accomplishments changed our strategic priorities.  These are accomplishments that nobody thought were possible.”

Again, false.

Here’s CNN’s Keith Boykin with graphs showing just how false Trump’s energy independence remarks were:

https://twitter.com/keithboykin/status/1214950568013242370?ref_src=twsrc%5Etfw

[The New Civil Rights Movement]

Trump compares impeachment process to ‘a lynching’

President Donald Trump compared the impeachment process to “a lynching” on Twitter Tuesday morning.

A check of his previous tweets and public statements showed that this appeared to be the first time he has used the term as president.

“So some day, if a Democrat becomes President and the Republicans win the House, even by a tiny margin, they can impeach the President, without due process or fairness or any legal rights,” he wrote. “All Republicans must remember what they are witnessing here – a lynching. But we will WIN!”

Criticism of the president’s tweet was swift – from Democrats and some Republicans.

GOP Rep. Adam Kinzinger of Illinois said the word referred to a “painful scourge in our history” and called on Trump to retract his statement.

“We can all disagree on the process, and argue merits. But never should we use terms like “lynching” here. The painful scourge in our history has no comparison to politics, and @realDonaldTrump should retract this immediately. May God help us to return to a better way,” Kinzinger tweeted.

A top Democrat, House Majority Whip Jim Clyburn, D-S.C., said on CNN, “”That is one word no president ought to apply to himself. You know, I’ve studied presidential history quite a bit, and I don’t know if we’ve ever seen anything quite like this.”

Rep. Bobby Rush of Illinois, an African American Democratic congressman, in a reference to the historical connotations of the word, said, “Do you know how many people who look like me have been lynched, since the inception of this country, by people who look like you.”

“What the hell is wrong with you?” Rush tweeted.

But GOP Sen. Lindsey Graham of South Carolina, chairman of the Senate Judiciary Committee, told reporters that he agrees with the president calling the impeachment probe a “lynching.”

“This is a lynching in every sense,” Graham said, defending the president. “This is un-American.”

Graham said the president’s use of the word in a tweet this morning is “pretty well accurate” in describing what Democrats in Congress are doing to the president by launching an impeachment probe.

“This is a sham, this a joke,” Graham said of the probe.

“I think lynching can be seen as somebody taking the law into their own hands and out to get somebody for no good reason,” Graham said.

“What does lynching mean? When a mob grabs you, they don’t give you a chance to defend yourself. They don’t tell you what happened to you. They just destroy you,” Graham went on.

“That is exactly what is going on in the U.S. House of Representatives right now,” Graham said.

Sen. Tim Scott of South Carolina, the only African American Republican in the Senate, also defended the president — if not his use of the word “lynching.”

“There’s no question that the impeachment process is the closest thing of a political death row trial, so I get his absolute rejection of the process,” Scott said.

“I wouldn’t use the word lynching,” Scott added.

Asked whether he disagreed with those who see the word as racially charged, Scott responded, “Yeah, I do actually disagree. I think the fact of the matter is that you’re talking about something that’s akin to a death row trial from a political perspective, so we should keep our focus on the fact that this is something that is something that has been done behind closed doors,” Scott said.

Trump’s tweet came amid a series of tweets apparently quoting programming on “Fox & Friends,” which included accounts about polling on impeachment and about former Secretary of State Hillary Clinton.

While he has previously referred to both the impeachment inquiry and Mueller probe as a “coup,” Tuesday’s comments appear to be the first time Trump has publicly used the word “lynching” to describe the investigations into his potential misconduct in office.

Trump’s allies, however, have used variations of the the word in such a context.

In September, Texas Republican Sen. Ted Cruz referred to Democratic outcry about Trump’s conversation with Ukraine President Volodymyr Zelensky — which sparked the impeachment inquiry — as a “lynch mob.”

On the campaign trail, former Housing and Urban Development Secretary and 2020 presidential candidate Julian Castro said the president’s use of the word was “beyond shameful.”

“It’s beyond shameful to use the word ‘lynching’ to describe being held accountable for your actions,” Castro tweeted.

Sen. Kamala Harris, another 2020 presidential candidate, called Trump’s tweet “disgraceful.”

“Lynching is a reprehensible stain on this nation’s history, as is this President. We’ll never erase the pain and trauma of lynching, and to invoke that torture to whitewash your own corruption is disgraceful,” Harris said in a tweet of her own.

George Conway, lawyer and husband to White House senior adviser Kellyanne Conway and a frequent Trump critic, called him “deranged.”

The president’s reference to “lynching” comes months after the Senate passed a bill that would make lynching a federal hate crime. The bill was introduced by Democratic Sens. Kamala Harris and Cory Booker — both now presidential hopefuls — and Republican Sen. Tim Scott of South Carolina.

The Justice for Victims of Lynching Act referred to lynching as having “succeeded slavery as the ultimate expression of racism in the United States following Reconstruction.”

“Lynching is not a relic of a painful past — it is a present and pernicious evil that we still have yet to confront,” Booker said in a statement in February.

[ABC News]

Trump targets ‘pathetic’ Federal Reserve after worst manufacturing reading in a decade

President Donald Trump again attacked the Federal Reserve on Tuesday after the weakest U.S. manufacturing reading in 10 years.

In a tweet, the president wrote Fed Chair Jerome Powell and the central bank “have allowed the Dollar to get so strong, especially relative to ALL other currencies, that our manufacturers are being negatively affected.” He contended the Fed has set interest rates “too high.”

“They are their own worst enemies, they don’t have a clue,” he wrote. “Pathetic!”

As his trade war with China rages on, Trump has repeatedly blamed the Fed’s interest rate policy for concerns about a slowing U.S. economy. He has contended the central bank has not moved quickly enough to ease monetary policy — though the Fed has cut its benchmark funds rate twice this year.

The Fed did not immediately respond to a request to comment.

Trump’s tweet comes after the Institute for Supply Management’s manufacturing reading fell to 47.8 in September, down from 49.1 in August. A reading below 50 shows a manufacturing contraction.

The poor economic data contributed to major U.S. stock indexes sliding Tuesday.

The dollar index, which measures the U.S. currency against a basket of global currencies, has climbed more than 3% this year and sits near its highest level since mid-2017. A stronger dollar relative to global currencies is generally expected to reduce exports and increase imports, hurting manufacturers because it makes their products more expensive overseas.

While exchange rates may have contributed to the drag on manufacturing in September, trade also did, according to ISM.

“Global trade remains the most significant issue as demonstrated by the contraction in new export orders that began in July 2019. Overall, sentiment this month remains cautious regarding near-term growth,” Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, said in a release announcing the data.

Trump has repeatedly downplayed any concerns about a looming American recession. He has also contended his trade conflict with the second-largest economy in the world will not harm businesses or consumers — despite indications that it has already started to hurt some companies and worry Americans.

Seeing concerns about a flagging economy as a ploy to discredit him before the 2020 election, Trump has claimed the central bank bears the blame for any slowdown rather than his own policies.

[NBC News]

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