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
Global economic uncertainty now lurks in a thick layer of mystery.
Jonah Whanau

2019-03-01 13:36:00 Friday ET

Global economic uncertainty now lurks in a thick layer of mystery.

Global economic uncertainty now lurks in a thick layer of mystery. This uncertainty arises from Sino-U.S. trade tension, Brexit fallout, monetary policy nor

+See More
Admitting China to the WTO seems ineffective in imparting economic freedom and democracy to the communist regime.
Dan Rochefort

2018-07-27 10:35:00 Friday ET

Admitting China to the WTO seems ineffective in imparting economic freedom and democracy to the communist regime.

Admitting China to the World Trade Organization (WTO) and other international activities seems ineffective in imparting economic freedom and democracy to th

+See More
Fed Chair Janet Yellen confirms with her successor Jerome Powell the final interest rate hike in December 2017.
Joseph Corr

2017-12-14 12:41:00 Thursday ET

Fed Chair Janet Yellen confirms with her successor Jerome Powell the final interest rate hike in December 2017.

Federal Reserve raises the interest rate by 25 basis points to the target range of 1.25% to 1.5% as FOMC members revise up their GDP estimate from 2% to 2.5

+See More
Facebook, Google, and Twitter attend a U.S. House testimony on whether these tech titans filter web content for political reasons.
Amy Hamilton

2018-07-15 11:35:00 Sunday ET

Facebook, Google, and Twitter attend a U.S. House testimony on whether these tech titans filter web content for political reasons.

Facebook, Google, and Twitter attend a U.S. House testimony on whether these social media titans filter web content for political reasons. These network pla

+See More
The May administration needs to seek a fresh fallback option for Halloween Brexit.
Peter Prince

2019-05-15 12:32:00 Wednesday ET

The May administration needs to seek a fresh fallback option for Halloween Brexit.

The May administration needs to seek a fresh fallback option for Halloween Brexit. After the House of Commons rejects Brexit proposals from the May administ

+See More
Apple provides positive forward guidance on both revenue and profit forecasts for iPhones, iPads, and MacBooks.
James Campbell

2019-02-09 08:33:00 Saturday ET

Apple provides positive forward guidance on both revenue and profit forecasts for iPhones, iPads, and MacBooks.

Apple provides positive forward guidance on both revenue and profit forecasts for iPhones, iPads, and MacBooks. In the Christmas 2018 festive season, MacBoo

+See More