US President Donald J. Trump, known to boast when stock markets boomed during the previous days of his presidency, was found to be uncharacteristically silent when the markets dipped sharply. The Dow Jones Industrial Average or DJIA went down by seven percent on February 2. The same southbound action got repeated on February 5th as well. The Nasdaq and the Standard & Poor 500 went steeply down as well. The markets were choppy during the previous days.
Comments made by Trump administration
The Trump administration understandably stayed quiet. Sarah Huckabee Sanders, the press secretary of the White House, tried to take the conversation to other subjects after the Dow plummeted about 1,175 points on February 5. She told the press that the US economy is robust at present. As per her statements, President Trump's focus continues to be the fundamentals. To prove her point, she showed the jobs report published during the last week of January. The report stated that unemployment is at record lows. Salaries grew at one of the fastest paces since 2009.
Steven Mnuchinb, the Treasury Secretary, avoided this subject altogether. Prepared remarks were served to House Financial Services Committee and to the press. When asked about the subject, the Treasury Secretary told the lawmakers that the condition of the markets is not a cause for concern. He said that the administration is extremely focused towards US economic growth in the longer term. He reminded lawmakers that the policies adopted by the Trump administration like tax reform are positive for economic growth in the longer term. There was a rise of 30 percent in the stock markets from the time the president got elected. Mnuchin said the stock markets are being monitored by the government and for all purposes, they continue to function well.
Boasting and unwilling to take responsibility
The Trump administration, on the face of it, has done no wrong. It is the custom of successive US regimes to stay quiet during stock market crashes. The Trump administration has no such excuse. The president himself has loudly and continuously claimed credit when the markets went north and broke all records during the preceding 15 months. It was mentioned even during Trump's State of the Union speech. He claimed that the markets gained eight trillion dollars in value within a short span of time. Market analysts were always cautious on this issue, pointing out what goes up must come down.