Bullish Wall Street Toasts Trump Hubris for 'All-Time Highs' in 2021, Crypto Coins News

Wall Street executives had a call with President Donald Trump in late March to talk about reopening the economy.
The Dow Jones is seeing a rapid upsurge as President Trump reaffirms the decision to open the economy remains with the President.
The Fed and the President remain on the same page in preventing a full-blown stock market meltdown.

Wall Street, which houses the largest financial institutions in the US, are collectively declaring the end of the Dow Jones bear market following a call with President Donald Trump last week.

Goldman Sachs, Morgan Stanley, JPMorgan Chase & Co., and Pipe Sandler all predict that the Dow Jones is unlikely to make new lows , forecasting all-time highs by .

Wall Street gets bullish on the Dow Jones | Source: CNBC

What was about the call with Trump that has Wall Street jubilated?

In the last week of March, President Trump and billionaire investors including Citadel’s Kenneth Griffin, Tudor Investment’s Paul Tudor Jones, Blackstone’s Stephen Schwarzman, and John Paulson had a call about reopening the US economy.

Amidst a Dow Jones downturn, hedge fund and private equity managers voiced their concerns over the inability of millions of individuals to work , discussing when to reopen the economy.

The official data from the Department of Labor showed that 6.6 million people were laid off in the week ending April 4, a dire piece of data that indicates a slowing economy.

(Over) million Americans have lost their jobs as a result of the pandemic, Labor Department data revealed on April 9. | Source: AP Photo / John Minchillo

In the past three days, President Trump has emphasized that only he gets the call over when to reopen the economy. On April , Trump said that he has the Authority to “supersede” governors

on the matter.

President Trump’s unwillingness to back down from his power to decide the fate of the US economy is likely what is keeping Wall Street and major financial institutions confident about the medium-term trend of the Dow Jones.

This week, governors of various states Suggested the creation of working groups to determine when it would be safe to reopen regional economies. President Trump reportedly reaffirmed that the authority to make that decision remains with the President.

President Trump’s reaffirmation that he will decide whether to reopen the economy or not in the near future is fueling optimism in the Dow Jones, as pre-market data shows a – point gain at market open.

Fed and Trump on same beat to rescue Dow Jones

Unlike previous economic downturns as seen in when the Dow Jones slumped as a result of an extended trade war with China, the Federal Reserve and the White House have both been aggressive in dealing with stimulus and fiscal policy.

Strategists have said the Fed has learned valuable lessons from , and former chair Janet Yellen said that there were “missteps” in preventing a full-blown financial crisis.

While the (Recent Dow Jones crash is significantly different from the crisis in that it was not a financial downturn that caused the bear market, the Fed is taking a more aggressive stance to boost the economy in the short-term.

)

The Dow Jones continues to climb as Wall Street expresses joy | Source: Yahoo Finance

Both President Trump and the Fed are seemingly focused on preventing a stock market meltdown, with the Fed guaranteeing sufficient liquidity.

The Fed’s surprisingly strong approach in tacking the economic consequences of the coronavirus pandemic and President. Trump keeping Wall Street giants happy despite rising coronavirus case numbers in the US are keeping the Dow Jones afloat.

This article was edited by Samburaj Das