President Trump, did you really say that?

A tweet from President Trump today seemed to have come entirely out of left field. Politicians on both sides of the political fence were taken by surprise when he tweeted that he had told his team to stop negotiating with congressional Democrats on a stimulus package until after the election. Many asked the question, “President Trump, did you really say that?”

In this morning’s tweet President Trump wrote that Nancy Pelosi is asking for $2.4 trillion to bail out poorly run, high crime, Democrat States, money that is no way related to Covid- 19. His tweet continued on by saying “we made a very generous offer of $1.6 trillion and, as usual she is not negotiating in good faith. I am rejecting their request, and looking to the future of the country.”

In a following tweet he asked Mitch McConnell not to delay, but to instead focus full-time on approving his outstanding nominee to the United States Supreme Court.

For those of you that read my commentary on a daily basis you may have noticed how I go to great lengths to present an unbiased view. I will continue to use that benchmark in every article I write. However, as a patriot with great love for our country I ask the following question, “Was President Trump’s statement today made on behalf of bettering the United States or himself?”

His tweet said that he planned to pass a “major stimulus bill” if he wins against Joe Biden in November. It is fair to ask, will this benefit the millions of Americans who need some sort of fiscal stimulus simply survive the next few months? Do you believe that it is in the best interest of citizens of the United States to ask the Senate to focus upon a Supreme Court nominee in lieu of negotiating a critically needed fiscal stimulus bill?

Investors and market participants responded on their own to these questions by taking the financial markets dramatically lower immediately following Trump’s series of tweets. The repercussions in the financial markets following his statements were dramatic.

As reported in MarketWatch, “U.S. benchmark stock indexes closed sharply lower Tuesday after President Donald Trump said he would end negotiations on a new fiscal stimulus package, unnerving investors who hoped Washington lawmakers would strike a deal soon.”

Chairman of the Federal Reserve, Jerome Powell, immediately commented a response to this news when in a speech to the National Association of Business Economics he said, “The U.S. economy needs more fiscal support even though the recovery from the “natural disaster” of the coronavirus pandemic so far has been strong.”

Besides all major indices trading lower all the precious metals were hit extremely hard by the news. Precious metals traders were under an optimistic belief that a fiscal stimulus bill could be passed as early as the end of this week.

As of 4:30 PM EST gold futures basis the most active December contract is currently trading off by $38.40, and fixed at $1881.70, which is a 2% decline in price. Silver lost 5.7% today, and after factoring in today’s decline of $1.40 is currently fixed at $23.16.

The question becomes will there be a further fallout from his statements, and can negotiations continue and create a bipartisan fiscal stimulus package that both sides agree on before the election.

The unemployment rate in the U.S. is the highest ever prior to a presidential election going back to 1948. Considering that more than 22 million jobs were lost during the spring lockdown, and rehiring has been slow at best. Without fiscal stimulus to reignite the economy and create more jobs, President Trump would become the first president on record, going back to Harry Truman to leave the White House with fewer jobs than when he started.

Wishing you as always good trading and good health,