WH: Economy remains ‘exceptionally strong’ despite market plunge
The White House on Monday said the country’s “long-term economic fundamentals” remain “exceptionally strong” after U.S. stocks dropped sharply earlier in the day, extending a massive sell-off on Wall Street.
“The president’s focus is on our long-term economic fundamentals, which remain exceptionally strong,” White House press secretary Sarah Huckabee Sanders said in a statement.
Sanders cited U.S. gross-domestic product growth, low unemployment and rising wages.
She said the GOP tax cuts and Trump’s efforts to slash regulations “will further enhance the U.S. economy and continue to increase prosperity for the American people.”
The White House is trying to deflect criticism after the Dow Jones Industrial Average fell more than 1,100 points on Monday, the largest one-day loss in its history. The S&P 500 also dropped 4.1 percent, its worst day in six years.
Trump has repeatedly touted gains on Wall Street since his election as evidence his economic policies are working.
But Trump did not mention the market during a speech Monday in Ohio, where he boasted of a “tidal wave of good news” set off by the tax cuts.
He cited rising wages and commitments from large corporations to invest billions of dollars in the U.S. and pay bonuses to their employees.
“And believe me, the reason it’s happening is because of what we did,” Trump said.
Monday’s losses came amid investors’ fears of inflation and a possible interest-rate hike.
The president has not yet been forced to deal with significant losses in the stock markets. The Dow is up more than 30 percent since he was elected president in November 2016.
Past presidents have generally avoided talking about the markets to avoid being tied to their performance.
Trump, however, has fully embraced the stock market’s post-inauguration rally.
“The Fake News Media barely mentions the fact that the Stock Market just hit another New Record and that business in the U.S. is booming … but the people know!” Trump tweeted last month. “Can you imagine if ‘O’ was president and had these numbers – would be biggest story on earth! Dow now over 25,000.”
More Administration News
See all Hill.TV See all Video