In what resembled a closing message for midterm elections, President Trump suggested Tuesday morning that recent losses in the stock market were tied to the possibility that Democrats could take control of one or both chambers of Congress in midterm elections.
“The Stock Market is up massively since the Election, but is now taking a little pause - people want to see what happens with the Midterms,” claimed Trump in a tweet. “If you want your Stocks to go down, I strongly suggest voting Democrat. They like the Venezuela financial model, High Taxes & Open Borders!”
The Stock Market is up massively since the Election, but is now taking a little pause - people want to see what happens with the Midterms. If you want your Stocks to go down, I strongly suggest voting Democrat. They like the Venezuela financial model, High Taxes & Open Borders!
— Donald J. Trump (@realDonaldTrump) October 30, 2018
Stock prices have been especially volatile in the last week and a half, as third quarter earnings fail to meet expectations and more companies claim Trump’s tariffs, and uncertainty caused by them, are contributing to lower bottom lines. Stock prices have on average now lost value over the course of 2018. It's a significant departure for Trump, who touted the strength of the stock market for much of the last two years, taking credit for rising prices.
Trump also deflected blame for those losses towards the Federal Reserve in a follow up tweet, which quoted an executive for the bank Wells Fargo.
“If the Fed backs off and starts talking a little more Dovish, I think we’re going to be right back to our 2,800 to 2,900 target range that we’ve had for the S&P 500.” Scott Wren, Wells Fargo.
— Donald J. Trump (@realDonaldTrump) October 30, 2018
“If the Fed backs off and starts talking a little more Dovish,” meaning the central bank would change its outlook on raising baseline interest rates for lending, “I think we’re going to be right back to our 2,800 to 2,900 target range that we’ve had for the S&P 500,” Trump’s tweet quoted Scott Wren, senior global equity strategist, as saying.