Financial expert issues grave caution on potential market-crashing risk
In a candid chat with Fox News Digital, Stephen Moore, the Heritage Foundation's Senior Visiting Fellow in Economics, shared his apprehensions and warned public officials and average citizens alike.
As the market grapples with fluctuating highs and lows, it's worth heeding the advice of Moore, a key advisor to former President Donald Trump. He has his fingers on the pulse of an unstable fiscal environment, particularly when it comes to federal budget tax cuts and stock market turmoil.
"A disaster for the markets would be if Republicans decide to increase tax rates," Moore cautioned. "That'd be nothing short of catastrophic. Never mind Republicans, they were born to slice tax rates, not boost them."
Moore further explained, "A president like this, who'll set the right policies, will see a thriving market... but sometimes, people lose their cool when the market nosedives like it has lately. And in doing so, they make the worst possible move – they dump their stocks at a loss."
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Stocks remain precarious, despite consecutive gains, following China's announcement about no active discussions on tariffs. White House Press Secretary Karoline Leavitt recently stated on Fox News that there "shall be no unilateral reduction in tariffs against China."
Republicans, along with President Trump, are pressing to pass the reauthorization bill for the 2017 tax cut package. If Congress fails to act within months, current tax rates will expire later this year, resulting in staggering increases for almost every taxpayer.
"Rumors about boosting corporate tax or personal income tax rates have been flying around," Moore mentioned, "and as an entrepreneur myself, I'd be concerned. But, all's not lost."
"Donald Trump, one of the most pro-business and pro-America presidents in modern times, will guide this market back to prosperity soon," the economist declared.
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Moore also addressed the common fear stemming from stock market downturns, "People lose their nerve and make panic-driven decisions. They sell their stocks at a loss during downturns – which I'm not advocating. But, if you're in it for the long haul, 2-5 years or more, this market's worth investing in – it's bound to recover."
During Trump's first term, he implemented policies such as tariffs on foreign aluminum, steel, and negotiated numerous trade deals with countries like Mexico, Canada, China, Japan, and South Korea. He also signed the largest tax reform package in history and pushed through approvals for projects like the Keystone XL and Dakota Access pipelines.
According to Moore, these ongoing initiatives will bear fruit, setting the stage for a market resurgence.
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Fox News' Chad Pergram and Ashlyn Messier contributed to this report.
- Stephen Moore cautioned that a potential catastrophe for the markets would be if Republicans were to increase tax rates.
- Moore suggested that in a volatile market, selling stocks at a loss during downturns might not be the best decision, emphasizing the importance of a long-term investing approach.
- Donald Trump's pro-business policies during his first term, such as implementing tariffs on foreign aluminum, steel, and trade deals with various countries, are expected to contribute to a market resurgenceaccording to Moore.
- The departure of the Trump administration from the Fed chair has added to the market turmoil, following China's announcement about no active discussions on tariffs.
- Republicans, along with President Trump, are pressuring Congress to reauthorize the 2017 tax cut package, with a failure to act potentially leading to staggering increases in current tax rates for most taxpayers later this year.
