Trump gets economic boost as he hits six months in office
Consumers were feeling more optimistic in July, and inflation has remained mostly in check – bringing Donald Trump 's White House to proclaim new 'swagger' as the president hits the six-month mark of his second term. Markets have been on a tear this summer since the president announced a 'pause' in Trump's 'Liberation Day' tariffs – with the S&P 500 index hitting a record on Monday in morning trading, toping a record from Friday.
On another key metric, the University of Michigan 's consumer sentiment survey, the index rose to 61.8 percent, up from 60.7 in June. The U.S. unemployment rate dropped to 4.1 percent in June, after the economy added 147,000 jobs. The White House sees the new data as validating Trump's policies – on the heels of passage of his megabill, which the administration plans to sell over the coming months despite negative approval ratings.
Trump's team even blasted out a release about a Wall Street Journal story, writing: 'Even the media admits the U.S. economy is "regaining its swagger" under President Donald J. Trump.' 'Now businesses and consumers are regaining their swagger, and evidence is mounting that those who held back are starting to splurge again,' the paper wrote. That came just days after Trump sued the Journal and its owner Rupert Murdoch for $10 billion over the Journal's report claiming Trump drew a 'bawdy' birthday cartoon for Jeffrey Epstein as part of a birthday compilation.
Trump's lawsuit calls the account 'false, defamatory, unsubstantiated, and disparaging.' His Treasury Secretary, Scott Bessent, has been bullish on the economy – as markets wrestle with the fate of Federal Reserve Chairman Jerome Powell and the looming August 1 trade tariff deadline. 'They were fear mongering over tariffs, and thus far we have seen very little, if any, inflation,' Bessent told CNBC , blasting administration critics.
'We've had great inflation numbers. So, you know, I think this idea [is] of them not being able to break out of a certain mindset. All these Ph.D.s over there, I don't know what they do,' he added. Trump attacked another Journal story over the weekend, calling it 'untruthful' after the paper reported Bessent told him that firing Powell would be bad for the market. 'If it weren't for me, the market wouldn't be at Record Highs right now, it probably would have crashed,' Trump wrote, putting the final word in all capital letters for emphasis.
Trump's repeated threats to fire Powell amid demands that he lower rates have themselves caused market gyrations. The White House also crowed about core inflation – which excludes energy – beating expectations, with industrial production also beating expectations. It also touted $120 billion in revenue from Trump's tariffs coming into the treasury. But it is those tariffs that also pose the greatest potential danger to the economic gains Trump is touting.
Markets tanked when he announced his 'reciprocal' tariffs on April 2nd, and rose each time he announced a delay. Trump has announced only a handful of deals since then, despite trade advisor Peter Navarro once boasting about reaching '90 deals in 90 days.' Those tariffs are potentially the greatest threat to the economic gains Trump is promoting. U.S. tariffs are now at their highest level in a century. The tariffs Trump has been announcing in letters impact allies and adversaries alike.
Trump's latest threat to Russia over its bombing campaign in Ukraine threatened to impose 100 percent 'secondary tariffs' on those who do business with Russia after 50 days – which in theory could bring in top trading partners China, India, and Brazil. A potential 15 to 20 percent tariff on the European Union could hit some of the nation's favorite consumer products – from German cars to Italian wine and cheese. Trump has announced a larger 30 percent tariff on Mexico and the EU of the parties can't negotiate a deal.
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