Donald Trump was counting on the booming economy to carry him to victory in his re-election campaign.
But all those plans were scrambled by the spread of the mysterious coronavirus.
And now Wall Street hit Donald Trump with one rude awakening that left him speechless.
The stock market is in the midst of a major correction.
Wall Street is set for its worst week of losses since the 2008 financial crisis.
CNBC reported “The Dow Jones Industrial Average plummeted 1,190.95 points, or 4.4%, to close at 25,766.64. The S&P 500 slid 4.4% to 2,978.76 while the Nasdaq Composite dropped 4.6% to 8,566.48. The Dow had its worst day since February 2018 while the Nasdaq and S&P 500 posted its biggest one-day loss since August 2011.”
Moody’s Analytics is now forecasting a 40 percent chance the coronavirus breaks out into a global pandemic.
Mark Zandi – the chief economist for Moody’s – stated that if the coronavirus breaks out into a global pandemic it will cause a recession in the United States and other countries around the world.
A recession would certainly increase the Democrats chances of victory as it would deprive Trump and the Republicans of their strongest talking point in the 2020 campaign.
But while the chances of a recession are increasing, they are not the most likely scenario.
Zandi forecast the coronavirus would cut six tenths of a point of projected U.S. economic growth in 2020 and reduce it from just under two percent to 1.3 percent.
The President and his supporters believe voters would not hold an economic slowdown caused by Chinese virus against the President so long as the administration’s response effectively manages any potential outbreak in the United States.
Renewed Right will keep you up-to-date on any new developments in this ongoing story.