Donald Trump’s 2020 re-election campaign is about to kick into high gear.
But the President might hit some troubled political waters.
And that’s because Donald Trump just got hit with some terrible news about the 2020 election.
Donald Trump is expecting the booming economy to bolster his re-election prospects.
But new economic data indicates he may not be able to count on that being the case.
Corporate earnings declined for the second straight quarter.
When that happened in the past, it indicated a recession would occur in the next year or two.
USA Today reports:
Yet with second-quarter earnings season underway, analysts are nervously waiting to see if the final results will deliver a second straight quarterly drop in corporate profits. Those surveyed by FactSet reckon the earnings of S&P 500 companies declined 1.9% in the April-June period from a year earlier. That’s based on a blend of their pre-earnings season estimate and actual results of the 16% of companies reporting so far.
Why the concern over back-to-back declines?
Two consecutive quarterly decreases would represent an earnings recession, which typically – but not always – foreshadows an economic recession within a year or two. Companies whose profits are squeezed tend to pull back hiring and investment.
No President has won re-election running for re-election in the face of an economic recession.
And the Federal Reserve may be trying to engineer one to oust Trump from office.
Trump repeatedly attacks the Fed for manipulating interest rates to slow down economic growth.
During Obama’s Presidency, his Fed Chairs did their best to prop up Obama’s failed policies to keep him in office.
But the Fed is the biggest monster in the Washington, D.C. Swamp.
And with impeachment efforts stalled out, the Swamp’s best chance to get rid of Trump would be the Federal Reserve staging a recession next year.
We will keep you up-to-date on any new developments in the 2020 Presidential Election.