Trump Knows the Truth About the Market Sell-off but Can't Say It Publicly | WHAT REALLY HAPPENED

Trump Knows the Truth About the Market Sell-off but Can't Say It Publicly

Donald Trump believes that the Federal Reserve is the greatest threat to the US economy. That's true, but that's only a small part of a bigger puzzle.

In a recent interview with The Wall Street Journal Trump singled out the Federal Reserve and its Chairman Jerome Powell as the biggest threats to the US economic growth:

“Every time we do something great, he raises the interest rates,” Mr. Trump said, adding that Mr. Powell “almost looks like he’s happy raising interest rates.” One of the obvious reasons why the US President is concerned about the Federal Reserve actions is that the stock market is tanking. The US stock market lost nearly $2 trillion in October and it was the worst month for the S&P 500 since September 2011.

If the current stock market correction becomes a stock market crash or a fully fledged bear market, the chances of Republican candidates in the midterms are likely to take a hit. If the stock market crashes and stays in bear market territory for a year or two, Trump's own hopes for reelection will likely be dashed by an angry electorate. To a certain extent the President has to blame himself for exposing his reelection hopes to risks associated with the stock market. He touted the stock market performance as a gauge of his successful presidency but now the stock market is acting like a toxic asset on Trump's political balance sheet.