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Boeing impact on US economy a worry for Trump reelection bid

AFP
Washington
President Donald Trump is counting on a strong US economy to seal his reelection victory but the Boeing crisis and ongoing trade frictions could undermine that strategy.
Trump on Wednesday criticized Boeing as a “very disappointing company” because of the aerospace giant’s recent problems after the worldwide grounding of the 737 MAX plane, which is having knock-on effects for the broader economy.
He also has lashed out at the Federal Reserve for mishandling monetary policy and keeping borrowing costs too high, which he says is likewise holding back the US economy.
Other scapegoats include Europe and China, which he says use trade policies to take advantage of or steal from the United States, and any country with a weak currency against the US dollar.
And as the impeachment trial against him proceeds in the Senate, Trump of course has blamed Democrats for a political attack that is distracting from his policy priorities.
However, no matter whom he chooses to cast as a culprit, the data show it is the trade wars Trump launched against multiple trading partners that are having the biggest effect, causing investment to screech to a halt amid widespread uncertainty.
Still, he is right about the potential damage from the travails at Boeing, which halted production of the top-selling 737 MAX aircraft after it was grounded following a pair of deadly crashes that killed 346 people.
- Trade wars weigh -Heading into the final months before the presidential elections in November, Trump has repeatedly taken credit for record stock exchange levels and cited his partial trade deal with China as proof of the success of his economic policies.
“Nobody has done so much as I’ve done,” Trump said in an interview with Fox Business Network from the economic forum in Davos, Switzerland, where he also floated the possibility of a middle-class tax cut.

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