In the stock market declines on Wednesday, we see new evidence for a simple truth.
Namely, that just as King Canute could not command the tide, President Trump’s absolute confidence cannot buffer the markets.
The data is clear. In the aftermath of his chief economics adviser Gary Cohn’s resignation on Tuesday and in the context of Trump’s continuing push for tariffs on foreign manufactured goods, the markets are sputtering. They fear what’s coming next, what Trump might decide to do simply because he feels like doing it.
For a president who regards himself as the bringer of great expectations, this week should be a wake-up moment.
Put simply, Trump must learn to recognize that while he has extraordinary power, his whimsical approach to governing can have negative ramifications for the nation and its prospective wealth. Trump might think he can command the economic tides with bold tweets and big tax cuts, but ultimately the markets want confidence and certainty just as much as boosted balance sheets. And this week, Trump’s total absence of certainty has led to a declining confidence in his economic leadership.
If he’s serious about getting the best results for his administration and the country, Trump must recognize the limits of bullishness in the pursuit of good governance.
