“If he’s elected, the stock market will crash”: Trump’s warning about Joe Biden could slowly become a reality as the markets suffer some recent bad days. Following a bloodbath on Wall Street, a clip of former President Donald Trump saying the election of Joe Biden would result in a stock market crash is circulating online. Trump warned that the markets would crash if Biden won the election during the 2020 debates.
“They said the stock market will boom if I am elected,” Trump said. “If he’s elected, the stock market will crash.”
In the 612 days after Trump took office, the tech-heavy NASDAQ climbed 44% according to conservative polling group InteractivePolls. Biden’s tenure, however, marked a significant decline in the index, going down over 19% at the same point in time.
A 0.75% increase in the federal funds rate by the Federal Reserve pushed the Dow Jones Industrial Average down more than 500 points. The Dow Jones Industrial Average tracks 30 of the largest companies on the U.S. stock exchanges. After remaining stagnant, the index lost another 500 points to 29,400. By January 20, 2021, the day of the inauguration of Biden, the Dow had finished slightly above 30,900.
As a result of multiple disruptions, including labor shortages, supply chain bottlenecks, and the Russian invasion of Ukraine, the U.S. economy has been experiencing inflationary pressures over the past two years. Prices rose 8.3% between August 2021 and August 2022, according to Bureau of Labor Statistics data, as Daily Wire reported.
The data shows a slight decrease from the 9.1% increase in June and the 8.5% increase in July year-over-year. Food, housing, and medical service prices continued to rise despite year-over-year inflation moderated, while core inflation remained steady and continued to rise.
The cost of energy has been a major factor in inflationary pressures. While promoting renewable energy, Biden has leased fewer federal lands for oil and gas drilling than any of his predecessors since World War II. He also canceled extensions of the Keystone XL pipeline project early in his tenure.
Interest rate targets have been raised by the Federal Reserve on several occasions in response to rising price levels. The measure designed to discourage inflation by raising borrowing costs for consumers and businesses. Following the confinement-induced recession, the Federal Reserve had previously raised interest rates near zero and purchased government bonds to stimulate the economy.
Nevertheless, this didn’t stop Biden administration officials from claiming that the economy was strong. In response to Fox News correspondent Peter Doocy’s question earlier this year about a poll showing that 83% of Americans think the economy is “bad or not so good,” White House press secretary Karine Jean-Pierre reiterated that the economy has improved since Biden took office.
Jean-Pierre responded, “What I’m trying to say to you is that the economy is in a better place than it has been historically.” “And so, we feel, here at this administration and other experts as well … we feel that we are in a good position to take on inflation. We are in a good position to really start really working on lowering prices,” she stated.