Crash Conspiracy? White House Denies Intentional Downturn

The White House is forcefully rejecting claims that President Donald Trump deliberately triggered a stock market crash as part of a calculated economic strategy, despite the president sharing a viral video suggesting exactly that. National Economic Council Director Kevin Hassett addressed the controversy on Sunday, responding to growing speculation about the administration’s intentions behind its sweeping tariff policy.

“He’s not trying to tank the market. He’s trying to deliver for American workers,” Hassett said on ABC’s “This Week” program. “It is not a strategy for the markets to crash,” he emphasized when repeatedly pressed on the issue, according to CNBC.

The denial comes after Trump himself fueled speculation by sharing a TikTok video on his Truth Social platform claiming he was intentionally crashing the market “by 20% this month” as a “wild chess move” designed to force the Federal Reserve to slash interest rates in May. The video, which Trump shared on April 4, asserted this strategy would “push cash into treasuries… weaken the dollar and drop mortgage rates.”

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Market Nears Official “Bear” Territory

Trump’s “Liberation Day” tariff announcement on Wednesday triggered one of the steepest market selloffs since the COVID-19 pandemic. The Dow Jones Industrial Average plummeted 2,231 points (5.5%) on Friday alone—its largest single-day drop since June 2020. The broad S&P 500 index has now lost approximately 17% of its value from its February peak, according to BBC News.

This rapid decline has brought major indices perilously close to official “bear market” territory, defined as a 20% drop from recent highs. The tech-heavy Nasdaq Composite has already crossed that threshold, sinking nearly 12% in just two days following the tariff announcement and entering a bear market.

While these declines don’t yet qualify as a true market “crash” by historical standards—a term typically reserved for drops exceeding 20% in a single day or over just a couple of days—they represent the sharpest and quickest market contractions since the pandemic panic of early 2020.

💥BREAKING

FORMER WHITE HOUSE ECONOMIC ADVISER KEVIN HASSETT SAYS A MARKET CRASH ISN’T PART OF TRUMP’S STRATEGY AND NOT AN ATTEMPT TO PRESSURE THE FED.

THIS CRASH WAS AN ACCIDENT??? pic.twitter.com/3F211bQBJg
— DustyBC Crypto (@TheDustyBC) April 6, 2025

Historical Context and Economic Implications

Market analysts point out that even these significant declines pale in comparison to historical crashes. On Black Monday in 1987, the US stock market lost 23% of its value in a single day. The infamous 1929 Wall Street Crash saw markets lose over 20% in two days and 50% within three weeks, ushering in the Great Depression.

However, financial experts warn that the real concern extends beyond investment portfolios. “The markets believe that US President Donald Trump’s tariff bombshell is expected to raise prices, lower demand and reduce profits, making companies less valuable and more inclined to cut investment and jobs,” explains the BBC analysis.

This market reaction signals broader economic concerns beyond fluctuating stock prices. Sudden market plunges frequently herald economic downturns, with traders essentially forecasting lower corporate profits and potential job losses in response to the new tariff regime.

Impact on Retirement Savings

For most Americans, exposure to the stock market comes primarily through retirement plans, particularly defined contribution plans like 401(k)s. Financial advisors note that properly diversified portfolios typically include bonds and other safer investments alongside stocks, which can help offset market volatility.

Government bonds have increased in value during this market turbulence as investors seek “safe haven” assets, potentially cushioning some retirement portfolios against the full impact of the stock decline. Additionally, those closer to retirement age typically have a higher percentage of their savings allocated to bonds, making them less vulnerable to equity market volatility.

Despite the administration’s denials that the market decline is intentional, the confusion highlights the uncertainty surrounding Trump’s economic strategy. As global markets continue adjusting to the new tariff landscape, investors and economists alike are watching closely for signals about whether this represents a temporary disruption or the beginning of a more sustained economic shift.

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