Why do Trump supporters claim that he wants to overthrow the US stock market? | News Donald Trump

The US share market had an unexpected ride from the election of the President of the United States Donald Trump in November.

After hitting record heights after Trump’s victory, the US shares spilled trillion dollars in the middle of his dizzying announcements about tariffs and increasing fear of recession.

While Trump played a turbulence as a temporary “transitional period” on the way to the stronger economy, supporters and critics of the US president have speculated without evidence that he may try to overthrow the stock market.

What happens to the US stock market?

Trump’s valid economic policy has created uncertainty – something that investors do not famously love.

The Benchmark S & P500, which follows the performance of the 500 largest American companies, has lost almost $ 5 trillion values ​​from its top since February 19.

On March 10, the technologically heavy Nasdaq fell by 4 percent of the worst one-day one-day fall since September 2022.

Regardless of whether Trump plays a long game, he claims, in the last month he “stands out for the amount of uncertainty and the variety of fronts,” said Tara Sinclair, Director of Economic Research University of George Washington, for Al Jazeera.

Index of Economic Policy Uncertainty, which Federal Spare Bank in St. Louis products based on news about economic policy issues, in February reached the highest level from the height of the pandemia of the Coid-19 2020.

In January, the Global Economic Policy Index reached its highest point at the record, except May 2020.

Why do some claim Trump wants to knock down the stock market?

There are several unfounded theories about why Trump might want to overthrow the stock market, but the main one is that he is trying to make it easier to pay an American national debt in the amount of $ 36 trillion by reducing interest rates.

Ever since he took over, Trump has both expressed concern about the size of the debt and invited the federal reserves to lower the interest rate.

In a recent interview with Fox News, he claimed that “no one ever enriches themselves when interest rates are high because people can’t borrow money.”

With a debt ratio to a gross domestic product (GDP) of about 120 percent, the federal debt is approaching its highest level from the end of World War II.

It is also expensive to repay – the US government spent more than three billion dollars last year on interest payments.

Some Trump supporters claimed that he intentionally tries to encourage economic pain to force federal reserves to lower interest rates, which would be cheaper to refinance the national debt.

“Trump sets up the stock market. The US government should refinance $ 7 trillion debt in the next 6 months,” said Kripto Influencer and investor Thomas Kralow, who has more than 500,000 followers on YouTube, last week.

“Trump does not want to do this on current 10-year-old yields. Because of this, he let the stock market fall while pushing bond prices,” Kralow said, adding that it would create a “short-term pain, long-term gain.”

While the federal reserves make their decisions independent of the White House and the US Congress, this usually reduces borrowing costs during difficult economic conditions to encourage growth.

When interest rates fall, the Government also pays a lower offering to US cashier bonds – basically the type of loan to the Government – thus reducing the costs of interest paid on the outstanding debt.

If the bond yields were demolished, the US government could pay significantly lower interest payments on debt that needs refinancing, which is expected to amount to about $ 9 in 2025, according to Axel Funhoff, a professor at the Antwerp Management School in Belgium.

“In a better part of the decade, they have now benefited from historically low interest rates. These lower rates have enabled the Government to finance its debt at the rate of about 2.7 percent, “Funhoff told LinkedIn Post in January.

Compared to that time of cheap borrowing, current interest rates are much higher: yields on 10-year-old Treasury bonds and 5-year treasury bonds were at 4.3 percent or 4 percent on Friday.

Why do some Trump critics say he wants to ‘buy dip’?

A different theory circulating among some Trump critics suggests that he deliberately intends to market shares to reward himself and his supporters, including conservative investors on Wall Street and the Silicon Valley Directors who support Maga.

Proponents of this theory claim that Trump has caused the market so that he and his allies can “buy” – in other words, buy discount shares before the market bounces.

“[Trump] intentionally manipulating stock markets…. Tariff intimidation, markets lower their rich friends, buy DIP, after that, the tariff, the stock market returns, said that rich friends are getting richer … It should be explored, “said the X Akasabrafell user last week.

So Trump actually wants the stock market to crash?

Although Trump’s administration has played discomfort in markets, it is no indication that he actually wants to drop the shares.

Indeed, Trump has often bragged about the performance of shares in his watch when the market was bull.

Kathleen Brooks, founder of the Minerva Analysis market analysis company, said she did not believe that Trump was deliberately trying to cause the market to fall.

“The American economy peaked in November, and since then US economic data have been lower and surprising on the fall. This means that the bond market had to play compensation, “Brooks told Al Jazeera, adding that other property like Bitcoin fell from the peak.

“It is not unusual for markets to move so. This is undermined by the view that the moves on the Treasury of Treasury are conspiracy theories. Instead, there are good fundamental reasons for the fall,” she said.

Some analysts on the market also suggested that the market was overrated and a correction was long ago late – Wall Street Lingo to drop more than 10 percent from its top.

The legendary investor Warren Buffett, whose market moves are watched carefully because of his decades of long record of the S&P 500 surpasses, has dropped at least $ 134 billion in stocks 2024 in sale, which was widely interpreted as a signal that the market was pleased.