An Interest Rate Cut May Not Help Trump’s Eroding Economy

Economy, Elijah Cummings, President Trump

Congressman Elijah Cummings wants to bring Donald Trump down. Cummings gave Homeland Security Chief Kevin McAleenan a verbal spanking for the unsanitary conditions in border detention centers. Cummings forcefully let McAleenan know allowing immigrants to sit in their own feces was not acceptable.

Mr. Trump told Cummings he was a loser and Baltimore was a disaster area after Cummings gave Trump’s border agent a smackdown. Part of Cumming’s district is in Baltimore. The president called Baltimore a filthy, rat-infested city. Trump said Cummings is the reason the city is in bad shape. But the Cummings district doesn’t resemble the picture Trump painted in his tweets, according to the New York Times.

Certain parts of Baltimore need work especially slumlord Jared Kushner’s housing projects in the city. Kushner still owns and profits from 15 housing projects called Kushnerville in Baltimore even though he works for the government. A New York Times report shows Kushnerville houses more than 20,000 mostly African-American renters, and the living conditions are well below the city standards. Kushner even files lawsuits against tenants who want to move out of Kushnerville.

Even though Huawei can’t buy and sell in the U.S. unless American tech companies receive a license from the Commerce Department, the giant Chinese tech company just rolled out its new 5G HongMeng operating system. According to Chinese news reports, a new Huawei TV will be the first product to use the new operating system. American tech companies need Huawei, but Trump wants to keep the pressure on China until he gets the trade deal he wants.

Trump’s negotiating team wants to restart the trade talks. According to one news report, Chinese companies want to buy more American farm products, but according to the Chinese news agency, Trump must drop the tariffs before that happens.

The Supreme Court gave Trump a win when his conservative justices gave him the green light to use Pentagon money to build a border wall in his honor. A Homeland Security spokesman said work on building the wall will begin again now that Trump has $2.5 billion to restart construction.

Fed Chairman Jerome Powell told the press the board will cut interest rates by a quarter of a percent in July. But several government economists don’t think a rate cut will stop the economic erosion caused by Trump’s sanctions and tariffs. Mr. Trump thinks a rate cut will hide his trade-war damage, but economists say Trump’s great economy will implode by the end of the year. Economists also think the U.S. economy will be in a 2008-type downturn by the second quarter of 2020.

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