According to Breitbart Economics Editor John Carney, the recent stock market boom may be a result of Wall Street’s optimism that Donald Trump will be re-elected, who acknowledged as much in an interview this week with Fox Business anchor Larry Kudlow. The stock market enjoyed a strong run throughout the Trump administration.
“Why is the stock market rising, John Carney? You’re an intelligent person.” Kudlow asked.
Carney pointed out two potential causes. First, it’s possible that the market reaction to the possibility of a further indictment against Trump by Special Counsel Jack Smith of the Biden Dept. of Justice was favorable.
“People claim that Trump’s chances of winning increase with each threat to indict him, and everyone is aware that the stock market performed exceptionally well following Trump’s inauguration.” Thus, he said, “I believe that people are stating, ‘Yeah, look, that is happening.'”
“I believe that the retail sales figure has also been somewhat interpreted,” he said. “People said that it performed less than anticipated. Instead of 0.3, the headline number read 0.2. Therefore, they speculated that perhaps a gentle landing is in store and the Fed won’t need to hike interest rates as much. That’s incorrect in my opinion, but it’s what gave the stocks a bounce.”
A graph depicting the stock market’s success under the Trump and Biden administrations was shown by Kudlow.
“Compare the stock markets of Trump and Biden,” Kudlow remarked. “Despite this rally, the stock market had a very, very horrible year last year. Therefore, some of it is returning. Trump, though, excelled. I mean, I realize it’s a little cynical, but it makes me wonder: the more Biden wants to put Trump in jail, larger numbers of individuals start to support Trump because they see Biden politicking and using the legal system as a weapon. I’m not sure whether that has anything to do with stocks right now. However, I do believe that stocks favor less regulation and lower taxation. If that’s unrealistic, let me know.”
“I think that is absolutely right,” Carney said. “I believe that people are thinking, Look, every time they attack Trump, he gains popularity and increases his chances of winning reelection.”
Carney also offered his opinion on Biden’s efforts to take advantage of the positive economic indicators.
“I’m delighted that things have improved from when they first started to deteriorate due to Biden inflation. The stock market fell as a result of that. We’re only now getting caught up with it,” he remarked. “Ironically, despite Biden’s constant boasting about Bidenomics, we are only now beginning to undo all the harm he has caused.”
He remarked on the absurdity of Biden’s most recent Tweet, which praised the rise in “real wages.”
“He claimed that salaries were improving,” Carney said. “They have improved for two months, but we are still catching up to where they were before his administration.”