A Red Barrier on Wall Street: President Trump Seems Confident It Will All Resolve | US News
A crimson wave swept through Wall Street.
The Dow plummeted by over 2,000 points in just one trading session – a rare occurrence that has only happened three times in its storied history.
The Nasdaq fell into a Bear Market – the antithesis of a Bull Market – indicative of a 20% decline from a recent peak.
All major indices, including the Dow, Nasdaq, and S&P 500, faced their worst week since the global pandemic struck five years ago.
This turmoil is a direct result of tensions between the world’s two largest economies – the United States and China – as they enter a trade war.
Marty Handler seen on Thursday at the New York Stock Exchange. Pic: AP
Other nations continue to ponder retaliation against Mr. Trump’s tariffs – “there will be consequences,” a Wall Street bank warns.
As China retaliated, the US president headed to the golf course, justifying his efforts to reduce the trade deficit and restore manufacturing jobs.
“China,” he stated online, “is not pleased with our reciprocal tariffs. They are essential for fair trade between China and the USA.”
“This illustrates that tariffs are a potent economic instrument and crucial for our national security!” he continued.
However, the chair of the Federal Reserve, responsible for managing US inflation, expressed a far more serious perspective.
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Jerome Powell stated: “It is becoming evident that the increases in tariffs will be substantially higher than anticipated, and the economic repercussions may mirror this truth.”
“While an increase in inflation is highly probable due to tariffs, there is a chance that these effects could endure,” he cautioned.
This poses a challenge for American consumers who have enjoyed the benefits of an open marketplace.
Although free trade led to the loss of manufacturing jobs in America, it resulted in lower prices on products sourced from countries like China.
Read more:
The impact of Trump’s tariffs will be felt soon
Global markets show a clear no-confidence vote against Trump
The president’s resolve to revive manufacturing jobs indicates the end of the era of lower prices.
A mother shopping near Washington DC expressed, “I’m extremely concerned about rising prices.”
She added, “It’s impacting families here in America, so yes, I worry a lot about that.”
When asked if she believed the government was making an error, her response was simple: “I do.”
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Her message for the president: “Stop it.”
He appears to be confident, believing that everything will resolve itself eventually.
Driven by the motto on his red cap – ‘Make America Great Again’ – he seems unfazed by the downturn on Wall Street.
