'Going to drop 10 percent': Morning Joe warns market already 'rattled' by expected moves
Donald Trump has already spooked the markets, according to MSNBC's Joe Scarborough — and his proposals could cut into the stock market's gains.
Economists said in a recent survey that they believe the Federal Reserve will take a more cautious approach to interest rate cuts due to fears that Trump policies would lead to higher inflation, and the "Morning Joe" host said the president-elect's nominees for high-ranking positions have already destabilized market forces.
"It's important to remember the market is at 45,000 right now," Scarborough said. "You have people who believe, like, for instance, Warren Buffett, that's overvalued. You have top leaders, hedge fund leaders starting to take their money out of the markets, because they fear the volatility coming up, that's why when you start talking about having these people ill-equipped, these people seeking retribution, these people who aren't up to the task, you start — and I will say, tariffs, too."
Trump has pledged to impose sweeping tariffs and deport millions of immigrants while also cutting taxes and regulations, and more than 60 percent of the economists surveyed believe those policies would have a negative impact on economic growth, and most of them were expecting those tariffs to spur higher inflation.
"There's going to be a real battle, I think, internally over tariffs, because Donald Trump doesn't want to see this stock market, which many people already believe is artificially inflated drop 10 percent in a day," Scarborough said. "Trust me, where it's sitting right now, if the moves are wrong it's going to drop 10 percent."
Trump views the market as his personal approval rating, and Axios co-founder Jim VandeHei said he needs them to continue booming to keep the leverage to carry out his economic plans.
ALSO READ: Inside AOC's plan for Dems to go after corporations — especially those tied to Trump
"We have some built-in advantages right now," VandeHei said. "On the good side, if you can get the Pentagon focused on what it needs to focus on, I think it's a good thing that you suddenly have really smart entrepreneurs like Mark Andreessen or Elon Musk thinking about government and trying to apply some of their mindshare to it, having the smartest people who built these technologies, who understand these technologies thinking about it and advising the president could be a net very positive thing if you structure your administration to make sure you're focusing on how to make the advantages we have bigger and bolder so that we create a bigger gap between us and China. That's what victory would be, that's what success for the country would be."
"But when you get into grievance or you get into retribution, that's the type of stuff that rattles markets, that does rattle world leaders or ultimately maybe the public," VandeHei added. "Maybe the public is just too disoriented right now, but the public will see this. The public doesn't want people jailing reporters, it doesn't want you doing things to defy institutional norms, so we'll see how it plays out."
Watch the video below or at this link.
- YouTube youtu.be