Screenshot via Fox News
- Guests and co-hosts on "Fox & Friends" all argued on Monday morning that the media is deliberately trying to cause a recession specifically to undermine President Donald Trump.
- "I hate to say it but to a degree, the media almost did it in December. Some people do it deliberately. Listen, there is no economic data out there that suggests we are on the cusp of a recession," guest Charles Payne argued.
- According to a recently-published survey from the National Association for Business Economics, 38% of economists expect a recession next year and 34% anticipate a recession to take place in 2021.
- Later in the show, former House Speaker Newt Gingrich said, "I think every left-wing reporter in the country and every Democratic presidential candidate is desperate for a recession."
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Guests and co-hosts on "Fox & Friends" all argued on Monday morning that by covering a possible upcoming economic downturn, the media is deliberately trying to cause a recession specifically to undermine President Donald Trump.
Stocks plummeted last Wednesday after the US bond market fired off a warning sign with an inverted yield curve, which reflects long-term interest rates on bonds dropping below short-term interest rates.
An inversion of the yield curve indicates that bondholders are spooked by the prospects of short-term bonds and are instead putting their money into long-term bonds, and has preceded every US recession since World War II.
For its part, the Trump administration is downplaying fears of a possible recession, which is defined by negative GDP growth for two consecutive quarters.
"We have the strongest economy by far in the world. The tariffs have caused nothing, or very little. I don’t see a recession. The world is in a recession right now … China is doing very poorly," Trump said to reporters in New Jersey on Sunday, referring to the tariffs his administration has levied on foreign imports from China.
Trump has gone so far as to even suggest to aides that the Federal Reserve Bank, the media, and other countries are all conspiring against him to cause a recession specifically to target him, The New York Times reported.
On "Fox & Friends," guest Charles Payne argued that because the yield curve was inverted for just 24 hours and consumer spending remains strong, fears of a recession are overblown.
"I hate to say it but to a degree, the media almost did it in December. Some people do it deliberately. Listen, there is no economic data out there that suggests we are on the cusp of a recession. Retail sales soar. Absolutely soar better than anyone anticipated. Earnings report from Walmart absolutely remarkable," Payne said.
According to a recently-published survey from the National Association for Business Economics, 38% of economists expect a recession next year and 34% anticipate a recession to take place in 2021.
While consumer spending is high and the US unemployment rate remains low, economists have expressed concern that the US’ soaring budget deficit and the Trump administration’s tariffs — the burden of which are shouldered by consumers — could slow down the economy.
After Payne’s segment, co-host Ainsley Earhardt further argued that the media is trying to talk up fears of a recession both to bring on a downturn — and diminish Trump’s re-election chances.
"If they can get America to believe that we are heading for a recession, then that’s when we could enter into a recession. So the media is here saying recession … knowing this is going to be a big issue for Americans when they go to the polls next year," Earhardt said.
Later in the show, former House Speaker Newt Gingrich went as far to say that reporters and 2020 Democratic presidential candidates are hoping for a recession over their dislike of Trump.
"I think every left-wing reporter in the country and every Democratic presidential candidate is desperate for a recession. It’s kind of weird. You know, they are running to be president in the hopes that more Americans will be unemployed," he argued.
The "Fox & Friends" hosts and guests arguing that media is pushing for a recession also directly echo Trump himself, who tweeted on Thursday that "the Fake News Media is doing everything they can to crash the economy because they think that will be bad for me and my re-election," adding that "we will soon be winning big on Trade."
No president since William McKinley in 1900 has won re-election after a recession in the second half of their term and a recession would be perilous for Trump especially, who is focusing his re-election campaign around the strong US economy and low unemployment.
Read more:
The yield curve has uninverted, but signs that a recession could be coming still linger
See Also:
- Voters may not like Trump, but they’re happy with the economy. A recession could tank his reelection chances.
- 2020 Democrat Andrew Yang says Trump is ‘so fat’ and that the only thing Trump could beat him at is an ‘eating contest’
- More than half of all Americans think Donald Trump fuels white supremacy
Source: Business Insider – gpanetta@businessinsider.com (Grace Panetta)