The president-elect, Donald J. Trump, has shown a keen interest in financial markets. He often boasts about the stock market’s performance during his first term in office and credits the anticipation of his return to the White House for the recent boom in stocks. Many analysts are focusing on how the new Trump administration will impact the markets, but few are considering the extent to which the markets can act as a check on the president’s power.
With Republican control of the House, Senate, and a conservative majority in the Supreme Court, President Trump may face fewer constraints from political institutions in his second term. This raises the question of whether the markets will play a significant role in influencing his decisions. While it is possible that the markets could have some influence, it is important to consider that they have become accustomed to and often overlook actions and statements that would typically elicit strong negative reactions.
President Trump’s recent announcements regarding new tariffs on China, Mexico, and Canada exemplify the complex relationship between the markets and the administration. Despite efforts to appease the markets with the appointment of financial experts, Mr. Trump’s decision to impose tariffs has caused global turmoil. It appears that President Trump is trying to balance calming the markets while also pursuing his own agenda, even if it means disregarding their warnings.
Overall, while the markets may have some influence on the Trump administration’s decisions, it is unlikely to serve as a significant check on his power. As long as corporate profits are rising and the economy is growing, President Trump will likely be able to move forward with his campaign promises. It is essential to continue monitoring how the markets respond to the administration’s policies and decisions moving forward.
