Hedge fund titan Julian Robertson proclaims President Donald Trump is doing an “excellent job” with the economy and deserves more credit.
Robertson believes Trump’s $1.5 trillion tax overhaul will benefit the economy and the American consumer.
“As a chief executive I think he’s done an excellent job,” the billionaire told CNBC, referring to the president. “I don’t think he’s gotten as much credit as he should for the job he’s doing,” said The former hedge fund manager, who now oversees his own fortune.
Forbes magazine ranked Robertson as the world’s 527th richest person, and 167th on the 400 Wealthiest Americans list, with an estimated personal fortune of $4.1 billion
The founder of Tiger Management praised the Tax Cuts and Jobs Act that Congress passed in December.
“I think it’s not only helped corporate earnings, it’s helped earnings of the middle class tremendously and I think they are very appreciative of this tax cut,” he said. “Eventually [we’re] going to have to have some restrictions, but for a while things should flow along beautifully,” said Robertson, who founded Tiger in 1980 and built it into one of the world’s largest hedge funds.
Traders on Wall Street seem to be applauding Trump’s economic leadership.
The S&P 500 edged up and the Nasdaq reached another record closing high on Thursday after the European Central Bank said it would avoid raising interest rates until mid-2019, and data showed U.S. economic strength, Reuters reported.
The strong U.S. retail sales numbers came a day after the U.S. Federal Reserve increased its key interest rate and hinted at the possibility of two more hikes by the end of 2018.
The ECB announced it would end its bond-purchase program at year-end but signaled that any interest rate hike was still distant.
“People are looking at potential tightening on the part of the ECB and realizing it may not come to fruition,” said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco. “I think people saw that today and thought that was positive news.”
However, the International Monetary Fund warned on Thursday that Trump’s new import tariffs threaten to undermine the global trading system, prompt retaliation by other countries and damage the U.S. economy, Reuters reported.
“Let us not understate the macroeconomic impact,” IMF Director Christine Lagarde said, saying the tariffs will have a larger economic toll if they prompt retaliation from trading partners like Canada and Germany.
The IMF, in a review of U.S. economic policy, also took a much less optimistic view on America’s economic growth potential than that of the Trump administration.
While U.S. economic growth is expected to be strong this year and next, recent tax and spending measures could cause greater risks from 2020 onwards, the IMF said in its report.
Trump has riled key allies by pursuing protectionist trade policies, including the imposition of steel and aluminum tariffs on the European Union, Canada and Mexico.
“These measures … are likely to move the globe further away from an open, fair and rules-based trade system, with adverse effects for both the U.S. economy and for trading partners,” the Washington-based international lender said.
For his part, Trump has touted his accomplishments on Twitter.
“The economy is the best it’s ever been with employment being at an all time high, and many companies pouring back into our country,” he recently tweeted.
…realize the economy is the best it’s ever been with employment being at an all time high, and many companies pouring back into our country. Wake up Punchy!
— Donald J. Trump (@realDonaldTrump) June 13, 2018
(Newsmax wire services contributed to this report).
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