Donald Trump spends an uncomfortable Christmas in the White house. Because the Democrats refused to allow him just before the holidays with a “gift” and no additional 5.7 billion dollars wanted to provide for the construction of the wall on the border to Mexico. Trump forced a “Shutdown” (translated: budget lock), of which 800’000 people are affected.
But the wall dispute is only the tip of the iceberg: For Trump politically serious developments on Wall Street. The stock market takes in a Deep historical dimension. The always green digits of all the major stock indices were the best advertisement for his presidency. If in the past, negative shock broke lines about Trump, were always good Figures, a straw and a suitable distraction at the same time.
In three months, the gains have been erased since the fall of 2017
As the self-proclaimed Self-made billionaire in January 2017 in the White house, moved in, he took over a functioning economy. The new US President has continued the legacy of his predecessor, Barack Obama, and broke in the past nearly two years of records to records: The Dow Jones broke through the first 20’000, a year later, the 25’000 mark, and in October reached the peak of 26 of the’828 points.
But since then, it’s all downhill, big time: In the past three months, the main stock index in the world lost over 5000 points to close at 24. December 21’792 points. Other indexes lost ground: The technology exchange Nasdaq is at Christmas so deep as since the autumn of 2017. And the S&P 500 stock index after the worst trading day before Christmas, on the verge of a bear market.
Wants to dismiss Trump Fed chief Powell and the Minister of Finance Mnuchin?
The reasons for the heavy losses are many and varied. The of Trump’s slyly “Shutdown” impacted the atmosphere as well as also Trump initiated – U.S. trade dispute with China. And what the US President makes? He’s edgy and deals. On Monday, a few hours before Christmas eve, he attacked, as in the weeks before the Federal Reserve made its policy of raising interest rates for the economic headwind is responsible. “The only Problem our economy has is the Fed,” wrote Trump. The policymakers would have no feel for the market.
Apparently, the U.S. President should have discussed in the week before Christmas, the dismissal of even the Fed-heads Jerome Powell. The Bloomberg reports and refers to people in the government. And because Trumps Finance Minister Steven Mnuchin has recommended about a year ago, Powell as Fed chief, will also he on the hit list to the President.
A possible dismissal of the Minister of Finance would have an impact on the world economic forum (WEF) in Davos. Mnuchin to lead the U.S. Delegation at the end of January, announced the presidential spokesperson Sarah Sanders last week. He is discharged well before the WEF? His fate should depend, according to the “Bloomberg” of how the markets will develop in the coming weeks.
Trump is threatening to the Two-year anniversary with a black Zero
On Christmas day, Trump said, for the first time to the various dismissal, rumors, and struck a noticeably different tone than on Twitter: He will find that he (Powell) raise interest rates too quickly, he had no confidence that the Fed will get the developments soon. Addressed to his Minister of Finance, Trump said he had in him the utmost confidence. “Mnuchin is a very talented guy, a very smart man.”
yesterday’s Comments could alleviate one of the Concerns on Wall Street, even though Trump had not ruled out the removal of Powell as head of the Central Bank explicitly. Today, on the second day of Christmas, the US opens a stock exchange.
For Trump to go during the holidays and in the first weeks of the new year, now is that not the profits be wiped out between January and September 2017. Otherwise, the US President on 20 may. January no more brackets on the occasion of its two-year anniversary in the White house the stock market gains. It would be from his point of view, a poor Start to the presidential campaign in 2020.