Former President Donald Trump claims that investors are bullish on the stock market due to his high polling numbers against President Joe Biden. Trump posted on Truth Social stating so, without presenting any evidence. Since his claim, the stock market has seen significant gains. The Dow Jones rose 1,000 points in just 40 days and the S&P 500 is up 4.55% in the year-to-date period and up 20.62% in the past year. Polls show a close race between Trump and Biden, with some indicating Trump slightly ahead.
Trump believes that a crash would occur if he doesn’t win and predicted the same prior to the 2020 election. However, the economy has shown resilience, with strong economic indicators, low unemployment rate, and signs of cooling inflation. Despite expectations of a downturn due to Federal Reserve interest rate hikes, the U.S. economy has remained strong.
Trump voiced doubts about Federal Reserve Chair Jerome Powell’s capability and suggested that Powell could reduce interest rates to favor the Democratic Party in the forthcoming elections. He also criticized Powell for being partisan and implied that he wouldn’t reappoint Powell should he win the presidency again.
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