aThe analyst compared Trump’s economic policies, such as the elimination of taxes and the imposition of tariffs, with the financial strategies of the early days of the United States as a country. Thus, he suggested that they are issues that could significantly influence the markets and the national debt.
ld The CEO of ARK Invest, Cathie Wooddrew parallels between the economic policies of former President Donald Trump and the financial strategies of the early days of the United States in a recent episode of “In the Know,” while analyzing possible market reactions to the upcoming elections.
Wood noted a correlation between the S&P 500’s performance and Trump’s poll numbers, highlighting several key economic policies that could impact markets.
In particular, the financial guru focused on Trump’s stance on itaxes, tariffs and monetary policy. “The market likes tax cuts and has been concerned that the tax cuts in the original bill, which was passed under President [Trump]they are going to expire at the end of 2025,” he explained. He added that Trump expressed his support for extending these cuts and introducing additional tax reductions for individuals and companies.
Trump’s comparison with Washington
Regarding tariffs, Wood offered a historical perspective: “In the early days of our country… we had no personal income tax, we only had tariffs, and these began under President Washington“. Although he expressed personal opposition to the tariffs, he suggested that markets are beginning to view Trump’s tariff rhetoric as a negotiating tactic.
Wood also addressed Trump’s stance on monetary policy, noting his advocacy for lower interest rates. He suggested that growth-oriented policies, including regulatory reductions, could affect the path of rates differently than expected. “If we implement growth policies, short-term rates probably won’t actually go down as much as we think,” he said.
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Wood suggested that reducing regulations could benefit innovation, recalling Trump’s previous “two-for-one” policy, which called for eliminating two existing regulations for every new one introduced.
The upcoming presidential election is shaping up to be a tight contest between Trump and Vice President Kamala Harris, with recent polls showing a very tight race.
Additionally, the tax policies of both Trump and Harris could significantly affect the US national debt. According to a recent analysis, their tax and spending proposals could add trillions to the debt by 2035.
Source: Ambito
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