Shifting Winds

By Isaac Cohen*

The Standard & Poor’s 500-stock index increased 12 percent since President Donald Trump’s election in November and the first days of March. There was hope that the incoming President’s three point agenda, of tax reform, less regulation and more infrastructure spending, would ignite more vigorous economic growth, beyond the 2 percent average of the last seven years of slow economic recovery from the Great Recession.

However, the winds shifted after the failure by the House of Representatives of approving the long promised “repeal and replace” of the health insurance bill. This caused a reversal in the markets, which pushed back some indicators to the levels they were before the presidential election. For instance, the Mexican peso regained strength, after falling because of the protectionist threats emanating from the White House.

Economic fundamentals could not be blamed for the market reversal. In mid-March, indicating a strong economy, the Federal Reserve increased the federal funds interest rate and started discussing how to reduce the $4.5 trillion central bank portfolio. Rather, as remarked by an analyst quoted in The Wall Street Journal, the Republican control of the White House and a congressional majority, thus far, have not generated positive legislative outcomes.

*International analyst and consultant. Commentator on economic and financial issues for CNN en Español TV and radio, UNIVISION, TELEMUNDO and other media. Former Director, UNECLAC Washington

About Ramón Jiménez

Ramón Jiménez, actual Managing Editor de MetroLatinoUSA. Periodista que cubre eventos de las comunidades latinas en Washington D.C., Maryland y Virginia. Graduado de la Escuela de Periodismo de la Universidad del Distrito de Columbia. Galardonado en numerosas ocasiones por parte de la Asociación Nacional de Publicaciones Hispanas (NAHP) y otras organizaciones comunitarias y deportivas de la región metropolitana de esta capital. También premiado en dos ocasiones como Mejor Periodista del Año por la cobertura de la comunidad salvadoreña; premios otorgados por la Oficina de Asuntos Latinos del Alcalde de Washington (OLA) y otras organizaciones. Ha sido miembro del jurado calificador en diferentes concursos literarios, de belleza y talento en la región metropolitana. Ha visitado zonas de desastre en Nicaragua, Honduras y El Salvador e invitado a esos países por organizaciones que asisten a personas de escasos recursos económicos. Antes trabajó en otros medios de prensa de Virginia y Washington, D.C., incluyendo reportajes para una agencia noticiosa mundial.

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