Stock Markets Dive Following Trump's Labeling of Online Tariff Speculation as "False Reporting"
Stock markets experienced a wild ride this morning, climbing rapidly following rumors that President Donald Trump might momentarily halt his global tariff policy. However, these claims were swiftly dismissed as fake news by the White House, sending markets back into a tailspin.
The buzz started after a tweet originated from an account known as "Walter Bloomberg," typically disseminating headlines and news snippets. The post read that "HASSSETT: TRUMP IS CONSIDERING A 90-DAY PAUSE IN TARIFFS FOR ALL COUNTRIES EXCEPT CHINA." This tweet was reminiscent of comments made by Kevin Hassett, director of the National Economic Council, who recently discussed Trump's tariff policy on Fox News. The tweet was later deleted, and emails to the account went unanswered.
Interestingly, the same news was briefly reported by Reuters as well, citing Hassett's interview. While the "Walter Bloomberg" account claimed it first heard the news from Reuters, it's essential to note that Hassett's interview provided a non-committal response when asked about a 90-day tariff pause. Hassett simply stated, "I think the president is gonna decide what the president is gonna decide."
The stock market surged by 8.5 percent in just 34 minutes, as traders jumped on the news. However, the White House took to Twitter's Rapid Response 47 account to dispel the rumors, insisting, "Wrong. Fake News." The market then plummeted.
Adding confusion, a Bloomberg business reporter later disavowed any link between the "Walter Bloomberg" account and Bloomberg News. The reporter clarified, "DO NOT RELY ON WALTER BLOOMBERG ACCOUNT. HE DOESN'T WORK FOR US AND IS NOT AUTHORIZED BY BLOOMBERG."
It appears the market mayhem was a misunderstanding of Hassett's Monday morning interview with Fox. Some commentators believe the reaction was an overreaction to a non-committal comment, while others see it as a temporary blip in an otherwise volatile market.
As for Trump's tariff policies, the global economy has taken a hit, with critics sounding the alarm for an impending recession. In a recent post on Truth Social, Trump coined a new term, "Panican," referring to those who panic about the economic situation. He urged Americans to be strong, courageous, and patient, claiming that "greatness will be the result!"
The tweet from the account "Walter Bloomberg" suggested that President Trump was considering a 401k-worthy 90-day pause in tariffs for all countries except China, contributing to a brief but significant surge in the stock market. However, this news was disputed by the White House, causing a supposed market plunge. Interestingly, Reuters reported the same news, but Hassett's interview did not provide a definitive response about a tariff pause. The "Walter Bloomberg" account was later disavowed by a Bloomberg business reporter, clarifying that the account was not authorized by Bloomberg News. The market's reaction to Hassett's comment, whether an overreaction or a temporary blip, is underscored by ongoing concerns about the impact of Trump's tariff policies on the global economy.
