Trump and top White House officials are trying to figure out what they can do to fix the damage.
Trump and White House officials are frantically searching for a way to boost the U.S. economy as economists signal a recession might be near.
The Washington Post reported Monday that Trump and top White House officials are considering pushing Congress to temporarily cut payroll taxes to boost the economy amid fears of an economic downturn. The New York Times also reported that the White House was considering letting up on some of Trump's tariffs.
The reports show that the White House is beginning to panic about a possible recession in light of uncertainty on Wall Street and an escalating trade war orchestrated by Trump — despite the administration's claims that the economy is doing well.
White House chief economic adviser Larry Kudlow recently tried to drown out fears about a slowing economy, and has claimed "there is no recession in sight."
Kellyanne Conway recently castigated reporters for covering the possibility that a recession is approaching.
"It's nice to see the media finally cover the Trump economy. You seem to cover it only when you can use the 'Sesame Street' word of the day, 'recession,'" Conway said earlier this week. "The fact is, the fundamentals of our economy are very strong, and you know it."
And during a gaggle with reporters Sunday, Trump claimed that economists had confidence in the U.S. economy and that a recession isn't near.
"And most economists actually say … that we're not going to have a recession. Most of them are saying we're not going to have a recession," Trump said, according to CNN.
The White House's bold claims stand in contrast to what economists, major financial institutions and the American people are saying.
A July survey by the National Association for Business Economics found that more than 70% of business economists believe a recession will hit within the next two years. Additionally, Bruce Kasman, chief economist at JPMorgan Chase & Co., pegged that changes of a U.S. recession within the next year at about 40% to 45%, Bloomberg reported.
Major banks, including Morgan Stanley, have specifically pointed the finger at Trump's trade war with China for the current economic uncertainty.
And a recent NBC News/Wall Street Journal poll found that Americans support free trade 64% to 27%, signaling a strong discontent for Trump's costly trade war.
Maybe Trump is beginning to realize his trade war is starting to destroy the U.S. — and the world — economy.
Published with permission of The American Independent Foundation.