Michelle ThompsonFormer President Donald Trump expressed his anticipation of a potential economic downturn, expressing a hope that it would occur within the next year, specifically before he could assume the presidency again if he were to win a second term in the upcoming November election.
In an interview aired on Lindell TV, a right-wing platform, Trump mentioned, “When there’s a crash, I hope it’s going to be during this next 12 months because I don’t want to be Herbert Hoover. The one president – I just don’t want to be Herbert Hoover.” Herbert Hoover’s first year in office in 1929 saw the US stock market crash, marking the start of the Great Depression.
These comments coincide with Trump’s efforts to emphasize his economic message and criticize President Joe Biden, especially as the crucial Iowa caucuses approach in less than a week.
Trump consistently criticizes Biden’s economic policies, describing the economy as “so fragile” in the interview and claiming it was essentially reliant on the previous Trump administration’s efforts.
However, a December jobs report surpassed expectations in terms of monthly job additions, capping off a year marked by resilience in the labor market, which has driven consumer spending and economic growth.
Treasury Secretary Janet Yellen defended the state of the economy, noting that there had been unwarranted pessimism, and despite earlier predictions of a recession, the economy remained strong with a robust labor market.
While the US stock market faced challenges such as regional banking issues, a debt ceiling crisis, and geopolitical tensions, it ended the year on a positive note. The S&P 500, Dow, and Nasdaq all experienced significant gains. Despite ongoing recession concerns on Wall Street and Middle East war worries, historical trends suggest that the S&P 500 tends to perform well during the fourth year of presidential terms, though the upcoming election could introduce market volatility.
