From the NYTimes
Economy Is Strong. Leadership Is Shaky. Which Will Win Out in 2019?
Moves like Mnuchin’s phone calls to bank C.E.O.s could create a broader crisis of confidence.
Treasury Secretary Steve Mnuchin in early December. Over the weekend, he seemed to be trying to reassure financial markets. He spread some alarm instead.CreditEvan Vucci/Associated Pre
By Neil Irwin
It is true that the global economy is sputtering, and that the stock market is in its worst pullback in a decade, with the Standard & Poor’s 500 index down more than 19 percent since Sept. 20 as of Monday’s close. But this sense of gloom and pessimism has gotten ahead of the facts on the ground, especially concerning the United States economy.
The real risk is not that insurmountable challenges knock the economy off course. It is that poor leadership converts moderate economic shocks into a crisis.
The combination of erratic behavior from the president and a thinly staffed government in the United States; the potential crises facing other major economies; and the lack of trust amid allies and major trade partners could make routine economic challenges turn into something worse.
corporateexecutives. And over the weekend Treasury Secretary Steve Mnuchin called bank C.E.O.s to seek assurance that their institutions were sufficiently liquid to keep lending to consumers and businesses, according to a Treasury announcement.
It was the kind of disclosure that risked causing more damage than it was intended to prevent. If a top health official announced that he had convened conversations with top pharmaceutical C.E.O.s and was pleased to learn there were no drug shortages, your first response would not be relief but to ask, “Wait, we need to worry about drug shortages?”
Then there are the president’s repeated attacks on a Federal Reserve led by his own appointees. Just in the last three days, that has included reports that President Trump has discussed the legally dubious move of trying to fire the Fed chairman Jerome Powell, efforts by administration officials to play down that possibility, and a renewed presidential Twitter attack Monday morning.
Donald J. Trump
✔@realDonaldTrump
https://twitter.com/realDonaldTrump/status/1077231267559755776
The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch - he can’t puttt10:55 AM - Dec 24, 2018
Economy Is Strong. Leadership Is Shaky. Which Will Win Out in 2019?
Moves like Mnuchin’s phone calls to bank C.E.O.s could create a broader crisis of confidence.
Treasury Secretary Steve Mnuchin in early December. Over the weekend, he seemed to be trying to reassure financial markets. He spread some alarm instead.CreditEvan Vucci/Associated Pre
By Neil Irwin
- Dec. 24, 2018
It is true that the global economy is sputtering, and that the stock market is in its worst pullback in a decade, with the Standard & Poor’s 500 index down more than 19 percent since Sept. 20 as of Monday’s close. But this sense of gloom and pessimism has gotten ahead of the facts on the ground, especially concerning the United States economy.
The real risk is not that insurmountable challenges knock the economy off course. It is that poor leadership converts moderate economic shocks into a crisis.
The combination of erratic behavior from the president and a thinly staffed government in the United States; the potential crises facing other major economies; and the lack of trust amid allies and major trade partners could make routine economic challenges turn into something worse.
corporateexecutives. And over the weekend Treasury Secretary Steve Mnuchin called bank C.E.O.s to seek assurance that their institutions were sufficiently liquid to keep lending to consumers and businesses, according to a Treasury announcement.
It was the kind of disclosure that risked causing more damage than it was intended to prevent. If a top health official announced that he had convened conversations with top pharmaceutical C.E.O.s and was pleased to learn there were no drug shortages, your first response would not be relief but to ask, “Wait, we need to worry about drug shortages?”
Then there are the president’s repeated attacks on a Federal Reserve led by his own appointees. Just in the last three days, that has included reports that President Trump has discussed the legally dubious move of trying to fire the Fed chairman Jerome Powell, efforts by administration officials to play down that possibility, and a renewed presidential Twitter attack Monday morning.
Donald J. Trump
✔@realDonaldTrump
https://twitter.com/realDonaldTrump/status/1077231267559755776
The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch - he can’t puttt10:55 AM - Dec 24, 2018
