From tariffs to tax bills to DOGE and federal budget cuts, President Trump has issued a myriad of policies impacting the economy since taking office in January, and the markets are responding accordingly.
On this week’s episode of Capitol Gains, anchor Madison Mills, Washington Correspondent Ben Werschkul, and Senior Columnist Rick Newman take a look at the current state of the economy and try to understand Trump’s economic plan happening in real-time.
Newman assesses the current economic landscape. “We have now seen the S&P 500 (^GSPC) stock index — it is down 4.5% since Trump took office. That is not a global phenomenon. The stock index in China, in Europe, and even in Mexico is up while our stock index is down.”
“Is Trump just playing a long game here?” Newman asks. “Is he like… I know what I'm going to do in two months and stocks are going to go back up?”
Werschkul agrees a long-term gain game plan from the president is a possibility, but not a guarantee.
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“When you talk to Trump folks about that - in the end, this will work itself out as a wash. Once we get our big tax cuts at the end of the year, that'll help balance some of this out. So if you kind of take the tough medicine now, a lot of this will work out in the long run. Whether that happens remains to be seen. But we've definitely got, as somebody put last week, a lot of veggies early on, the question is whether the dessert ever comes.”
To learn more, listen to the full episode of Capitol Gains here.
For more expert insight and the latest market action, click here to watch more Capitol Gains.
Capitol Gains is Yahoo Finance’s unique look at how US government policy will impact your bottom line long after the Presidential election polls have closed.
This post was written by Lauren Pokedoff