Dow could top 30K if Fed cuts rates, USMCA gets passed: Peter Navarro
Peter Navarro: Dow Jones will exceed 30,000 with USMCA and rate cuts
White House trade advisor Peter Navarro says the Dow Jones will exceed 30,000 if Congress passes the USMCA trade deal and the Federal Reserve cuts rates.
White House trade adviser Peter Navarro is predicting the Dow Jones Industrial Average could hit an all-time milestone above 30,000 if the Federal Reserve cuts rates and Congress passes the United States–Mexico–Canada Agreement (USMCA) trade deal.
"Let’s focus on the USMCA, getting that passed. Let’s focus on the Fed lowering interest rates starting this July and guess what, if we do that, we’ll cruise past 30,000 on the Dow and we’ll keep this prosperity cycle going," he told FOX Business’ Charles Payne on Wednesday.
Navarro credits President Trump's policies for leading America’s economy into prosperity, but casts blame on the Fed for slowing potential gains by raising interest rates.
"The Fed needs to look in the mirror," he said. "The reason why it slowed down is because the Fed raised interest rates a hundred basis points, drove the dollar up, suppressed our exports."
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The U.S. economy continued to grow at a "modest" pace from mid-May through mid-July, but manufacturers across half of the central bank’s districts are grappling with major trade uncertainty. Manufacturers saw further weakening during the same period due to tariffs, according to the Fed's Beige Book, released this week. "The Fed really needs to do some deep reflection when it puts out these kinds of reports and doesn’t even mention the fact that the big drag on the economy has been higher interest rates," Navarro said.
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The central bank maintained a positive economic outlook despite concerns about trade uncertainty between China and the U.S.
"We’re in a quiet period now with the Chinese," Navarro said about the current trade dispute between the world’s two largest economies.