President Trump criticizes the WTO and proposes indexing capital gains taxes to inflation for U.S. investors.

Charlene Vos

2018-08-29 10:37:00 Wed ET

In an exclusive interview with Bloomberg, President Trump criticizes the World Trade Organization (WTO), proposes indexing capital gains taxes to inflation for U.S. investors, and then expresses no regrets over appointing the Fed chairman Jerome Powell. Trump points out that WTO rules have been an unfair trade deal for America because the U.S. often has to respond passively to assuage many WTO complaints and concerns. When Trump comes into office, America reverses the U.S. long-run disadvantage and starts to win trade lawsuits because the Trump administration threatens to withdraw America from the WTO if this key international organization declines to shape up. Meanwhile, Trump indicates that Canada may or may not continue to be part of the NAFTA trade deal. Moreover, Trump rejects the European Union's trade proposal to eliminate tariffs on automobiles.

In the same interview with Bloomberg, President Trump proposes indexing capital gains taxes to inflation, and this change would slash taxes for investors when they sell assets such as stocks, bonds, and real estate properties. This index can adjust the original purchase price for inflation and therefore helps spur job creation and economic growth since investors would face minimal taxes on erroneous phantom income. These tax cuts can benefit small-to-medium enterprises (SMEs), owners, founders, and entrepreneurs. National Economic Council top adviser Larry Kudlow indicates that the Trump administration hopes to bypass Congress to implement this expansionary tax policy. Trump opponents contend that the fiscal stimulus may exacerbate economic inequality in America.

In accordance with the universal notion of central bank independence, President Trump likes and respects Powell as the Fed chairman who should be free from political influence. Trump expresses no regrets over appointing Powell to succeed Yellen in the Federal Reserve System's top post. However, Trump hints to the new Fed Chair that he should seek to help accommodate U.S. economic affairs during the current interest rate hike. Trump expects the greenback to stabilize within some reasonable bounds as the Fed chairman pencils in some further interest rate hikes in September and December 2018. This interest rate hike can continue its current cycle until December 2019 as the core CPI inflation rate surges above the neutral 2% target.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Carmen Reinhart and Kenneth Rogoff analyze long-run crisis data to find the root causes of financial crises for better bank capital regulation and asset market stabilization.

Laura Hermes

2023-06-28 09:29:00 Wednesday ET

Carmen Reinhart and Kenneth Rogoff analyze long-run crisis data to find the root causes of financial crises for better bank capital regulation and asset market stabilization.

Carmen Reinhart and Kenneth Rogoff delve into several centuries of cross-country crisis data to find the key root causes of financial crises for asset marke

+See More

Addendum on USPTO fintech patent protection and accreditation

Andy Yeh Alpha

2023-01-11 09:26:00 Wednesday ET

Addendum on USPTO fintech patent protection and accreditation

Addendum on USPTO fintech patent protection and accreditation As of early-January 2023, the U.S. Patent and Trademark Office (USPTO) has approved our U.S

+See More

New computer algorithms and passive mutual fund managers now run the stock market.

Joseph Corr

2019-11-17 14:43:00 Sunday ET

New computer algorithms and passive mutual fund managers now run the stock market.

New computer algorithms and passive mutual fund managers run the stock market. Morningstar suggests that the total dollar amount of passive equity assets re

+See More

Former basketball star Shaq O'Neal learns a major money lesson from Amazon Founder Jeff Bezos.

Laura Hermes

2019-08-06 07:28:00 Tuesday ET

Former basketball star Shaq O'Neal learns a major money lesson from Amazon Founder Jeff Bezos.

Former basketball star Shaq O'Neal has almost quadrupled his net worth once he learns and applies an ingenious investment strategy from Amazon Founder J

+See More

Fed Chair Jerome Powell sees a remarkably positive outlook for the U.S. economy in early-October 2018.

Charlene Vos

2018-10-03 11:37:00 Wednesday ET

Fed Chair Jerome Powell sees a remarkably positive outlook for the U.S. economy in early-October 2018.

Fed Chair Jerome Powell sees a remarkably positive outlook for the U.S. economy right after the recent interest rate hike as of September 2018. He humbly su

+See More

Treasury Secretary Steve Mnuchin indicates that the Trump team puts the trade war with China on hold.

Olivia London

2018-05-19 09:29:00 Saturday ET

Treasury Secretary Steve Mnuchin indicates that the Trump team puts the trade war with China on hold.

Treasury Secretary Steve Mnuchin indicates that the Trump team puts the trade war with China on hold. The interim suspension of U.S. tariffs should offer in

+See More