U.S. President Donald Trump points his finger as he signs an executive order on AI next to U.S. Senate Commerce Committee Chairman Ted Cruz (R-TX) and U.S. Commerce Secretary Howard Lutnick, in the Oval Office at the White House in Washington, D.C., U.S. December 11, 2025. REUTERS/Al Drago
With the United States' 2026 midterms 10 months away, Democratic strategists are forcefully attacking President Donald Trump's economic policies — which, Democrats argue, are bad for both businesses and consumers. But Trump and his allies are claiming that his policies are great for investors. And on right-wing Fox Business, it isn't hard to find MAGA Republicans arguing that Trump is beneficial for 401(k) retirement plans.
In an article published on January 8, Axios reporter Madison Mills examines the "Trump economic playbook" and cites some ways "investors can find clarity in the noise."
"President Trump said Wednesday, (January 7) that he would seek to ban institutional investment in single-family homes, then shortly after said he'd work to ban defense companies from offering dividends or doing buybacks," Mills reports. "Stocks in both sectors sold off as a result…. Brace yourself for more market-moving statements from the White House, market strategists say."
Terry Haines, founder of Pangaea Policy, told Axios that Trump and his allies want "to make sure that they are showing as many voters as possible that they're doing absolutely as much as possible, on affordability, on defense, on all kinds of things."
Haines added, "It's going to be wild going forward."
Joe Brusuelas, chief economist for the accounting firm RSM, told Axios that Trump's ideas "might not translate into actual, enforceable policy."
Mills notes that investors "can find clarity by monitoring Trump's goals: If he is focused on affordability and national security, more policy to that end is likely."
The Axios reporter also points out that investors, in the months ahead, will be paying close attention to the U.S. Federal Reserve's decisions on interest rates.
Trump is angrily railing against Fed Chairman Jerome Powell for lowering interest rates gradually rather than dramatically. After Powell's term ends, Trump is expected to appoint, as Fed chair, a MAGA loyalist who will give him the major interest rate cut he wants.
Peter Tchir, head of macro strategy at Academy Securities, recently told reporters, "I think you have to look at this administration. They are telling you they want 3 percent overnight rates. As we just saw with what they did with (Venezuelan President Nicolás) Maduro, I would not think they will stick to traditional methods to accomplish their goals."
Read Madison Mills' full article for Axios at this link.