Former President Donald Trump recently shared a video on his social media platform, Truth Social, that claims he is purposely crashing the stock market. The video suggests this is part of a strategy to manipulate economic conditions for long-term gain. According to the video, Trump’s actions, such as implementing broad tariffs on foreign imports, are an attempt to push cash into treasuries.
This would force the Federal Reserve to slash interest rates, allowing the government to refinance trillions of dollars of debt inexpensively, weaken the dollar, and reduce mortgage rates. The narrator argues that while unconventional, this move could benefit the middle class through lower prices. However, prominent economists and several of Trump’s own allies have expressed skepticism about this strategy.
Warren Buffett, mentioned in the video as a supporter, actually criticized the president’s tariff policy, asserting that tariffs typically end up being paid by consumers. Former House Speaker Newt Gingrich commented, “I have no idea why he would promote that view.
Trump’s stock market strategy scrutinized
It’s not something we’ve been briefed on.” Marc Short, who served as Trump’s White House legislative affairs director, remarked that inducing the Fed to lower rates by crashing the economy is not a viable policy. Despite the confusion, an unnamed Trump administration official emphasized that the tariffs were designed with shock value in mind, rather than careful economic calculations. “The president isn’t a number-crunching guy, but he wanted big numbers that would make other countries treat us fairly,” the official explained.
Most Americans are bracing for a potentially lengthy period of economic hardship. The stock market’s decline is expected to affect the retirement savings and 401(k)s of working-class Americans. The global financial firm J.P. Morgan Chase recently raised concerns about a possible global recession.
Fox Business’ Stuart Varney noted that recession is now “a probability, not a possibility.”
The White House has yet to respond to requests for comment on the president’s controversial post. The controversy surrounding Trump’s economic policies and the narrative of a deliberate market crash underline the deep divisions in how these strategies are perceived and their potential impacts on the American economy.
