Fiona Hill, Trump’s former Russian advisor, told the press Putin has the United States where he wants it. Putin didn’t start the battle between Trump and Congress, but he knows how to use it to smear democracy. Mr. Putin wants to show the world the United States and Great Britain are not as invincible as they think they are, and he thinks the partisan attitude in the states, and Brexit prove it.
Trump continues to make statements that confuse the quest to stop the spread of the coronavirus. Mr. Trump told the press doctors find his knowledge of the coronavirus amazing, even though the president doesn’t have a clue about the nature of the virus or how to stop the spread. The president’s reaction, and his coronavirus rhetoric, hurts more than helps the effort to stop COVID-19.
Mr. Trump wanted to keep the 3,500 passengers on the Grand Princess from docking when he discovered 21 people on board had the coronavirus. Pence delivered test kits to the cruise ship and health officials decided to let the ship dock when the president told them to make the decision.
Health officials continue to up their warning about the spread of the virus, but Mr. Trump and his team continue to downplay the health concerns related to the COVID-19 outbreak and the amount of economic damage the virus brings with it.
Fed Chief Jerome Powell wants Trump to help stimulate the economy by increasing spending or cutting taxes, but the president’s economic advisor Larry Kudlow continues to dance around an economic response from the White House. The president mentioned a payroll tax cut, but Trump continues to deny the economy will take a major hit from the global pandemic. But according to the IMF, the global economy continues to erode and there’s not enough gas in interest rate tanks to stimulate the global economy.
Global economic growth could drop by more than 1.5% in March, and China’s economy will erode by more than 4.5%, according to Wall Street economists. The U.S. economic growth will drop by 1%, and Europe’s economy is on the cusp of a recession.
Bankers aren’t happy about the 50 basis point interest rate cut. Bank revenues are in the toilet, and the rate cut exacerbates to the revenue decline. Some consumers want to refinance now that mortgage rates are 3.25%. But they don’t plan to buy on big-ticket items or travel, and those decisions will play a big part in economic erosion.
Further Reading: https://www.reuters.com/article/us-health-coronavirus-cenbanks-rates-fac/factbox-big-banks-predict-fed-could-take-interest-rates-to-zero-idUSKBN20X2RY
Dil Bole Oberoi
