As the election starts to heat up, candidates will begin to discuss their plan for the economy. Discover how the president's relationship with foreign trading powers can affect the start or stop of a recession.
Can a President Alone Start or Stop a Recession? – Video Transcription
Patrick Brunson: 00:00
Everyone should be expecting to see more news about the economy as the election cycle starts to heat up. Anxiety about a possible recession is at the forefront of the voting public's mind and candidates should be expected to bring it up constantly. As these candidates discuss what their plans for the economy are an important question must be asked, what can a president do to start or stop a recession? A major tool at a president's disposal is their relationship with foreign trading powers such as China. Currently, the relationship with China is rocky, to say the least, and a president's ability to diffuse these tensions without compromising U.S. trade could have a huge impact on how the economy develops moving forward. Future negotiations with China should likely be a major tool for any president heading forward, so a president might change the way they handle any tariffs or trade agreements with outside powers as well.
Patrick Brunson: 00:57
They may do this to stimulate the economy. For example, proposed tariffs on automotive imports may be handled in harsher or more relaxed ways depending on how a president feels they might affect the economy. There are factors aside from these external relationships. For example, a president can focus internally on the relationship they have with the Federal Reserve, which is extremely important. How they communicate with the Federal Reserve chairman publicly and privately may affect the economy as well. The perception a president creates affects the behavior of traders on Wall Street as well as influencing the Fed's policies. A president also may consider how they use taxes. For example, President Trump's Tax Cuts and Jobs Act of 2017 seems to have encouraged economic activity. In addition, a president may choose to sign legislation to raise or lower taxes depending on how they think it might impact the economy. So for a more in-depth understanding of these issues for the 2020 election, I want you to call the number on your screen to receive U.S. Money Reserve's latest special report Decision 2020, this report provides in-depth coverage of the U.S. economy going into the 2020 election. So please click on the link below or call the number on your screen to get your copy today. If you find that this information has been useful, feel free to comment and share this video. If you're watching us from YouTube, please subscribe to our channel so that you don't miss a single episode. I'm U.S. Money Reserve's, Patrick Brunson, and thank you for watching Market Insights.