Shocking Revelations: Market Drop Linked to Mag 7, Not MAGA, Unveiled in Explosive Tucker Carlson Interview
In a recent interview, U.S. Treasury Secretary Scott Bessent downplayed the recent stock market decline, attributing it to the introduction of China’s DeepSeek artificial intelligence technology rather than the economic policies of President Donald Trump. During a conversation with conservative commentator Tucker Carlson, Bessent remarked, “For those who believe this market downturn is driven solely by the President’s economic agenda, I assure you it began with the announcement of China’s AI tool, DeepSeek.”
Market volatility has been a burgeoning concern after U.S. stocks plunged nearly 10% following President Trump’s unveiling of a new and more aggressive global tariff regime. Analysts and investors have largely attributed this drop to the tariff policy, which has raised fears of inflation and slowed economic growth. However, Bessent suggests an alternate view, linking the downturn to “Mag 7,” referring to the drop in value of tech giants known as the Magnificent 7, not to Trump’s “Make America Great Again” or MAGA policies.
The stock market did initially dip when DeepSeek was launched in January, causing a dramatic one-day loss of nearly $600 billion in shares of AI chipmaker Nvidia, a key player among the Magnificent 7. However, the market managed to rebound by mid-February, with the S&P 500 reaching a record high before experiencing renewed declines. This subsequent downtrend was fueled by consumer pessimism about the economic outlook and fears that Trump’s tariff policies would exacerbate inflation.
Since February 19, the S&P 500 has suffered a 14% loss, wiping out nearly $10 trillion of market value. Bessent’s comments align him with other Trump administration officials, such as Commerce Secretary Howard Lutnick, who also dismissed the market plunge in response to Trump’s proposed global baseline import tax of 10% and higher rates on imports from numerous countries.
On social media, President Trump has not shied away from the topic, recently retweeting a post titled “Trump is Purposely CRASHING The Market,” highlighting the ongoing debate about his economic strategy. Some critics argue the administration may be aiming to weaken the dollar to enhance U.S. competitiveness abroad, a claim Bessent refutes, asserting a commitment to maintaining a strong-dollar policy. He emphasized, “No one should listen to anyone in the markets speak about the U.S. dollar other than President Trump or myself.”
Despite administration reassurances, the dollar has depreciated by nearly 6% against the currencies of major trading partners since Trump’s inauguration. As market analysts, economists, and policymakers continue to dissect these economic tremors, they underscore the complex interplay of international developments and domestic policies impacting the U.S. financial landscape. The stakes remain high, urging stakeholders to remain vigilant in navigating these unsteady economic waters.
Original Source: https://www.livemint.com/news/us-news/treasurys-bessent-market-drop-a-mag-7-problem-not-a-maga-one-he-says-in-tucker-carlson-interview-11743798540603.html
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Publish Date: 2025-04-05 01:59:00
