Trump Blames Kamala Harris for Market Plunge, Harris Hits Back on Economic Record

Republican presidential nominee Donald Trump has placed the blame for a recent plunge in the stock market on Vice President Kamala Harris, who is also the de facto Democratic presidential nominee. This comes months after Trump claimed credit for the market's record upswing.

The Blame Game

In a post on Truth Social about Kamala Harris, Trump stated, "Of course, there is a massive market downturn. Kamala is even worse than Crooked Joe." He accused Harris and the Biden administration of causing the market turmoil, asserting that "Harris doesn't have a clue. Biden is sound asleep. ALL CAUSED BY INEPT U.S. LEADERSHIP!" This accusation came after a sharp decline in U.S. stocks, which was partially sparked by a weaker-than-expected jobs report released on the previous Friday.

It is worth noting that Trump's previous claim of the economic surge this January was attributed to the stock market's performance, which he linked to his favorable polling against President Joe Biden. He remarked, "THIS IS THE TRUMP STOCK MARKET BECAUSE MY POLLS AGAINST BIDEN ARE SO GOOD THAT INVESTORS ARE PROJECTING THAT I WILL WIN," he wrote on Truth Social that month.

Harris Campaign's Response

The Harris campaign did not remain silent in the face of Trump's accusations and fired back at his economic record, stating that "Donald Trump had the worst jobs record of any modern president, and oversaw some of the worst days in the stock market in history while spending his presidency lining the pockets of his wealthy friends who shipped American jobs overseas.

The Harris campaign spokesperson further emphasized that what middle-class families need is "steady economic stewardship," not "chaotic ranting lies." This exchange between the Trump and Harris camps highlights the contentious nature of political discourse in the lead-up to the elections.

The Politically Charged Stock Market

Trump's comments underscore the political ramifications of linking a campaign to the volatile behavior of the stock market,  Moody's chief economist Mark Zandi, told CNBC. Zandi pointed out that throughout history, politicians have generally avoided associating their fortunes with the stock market's ups and downs because it is inherently unpredictable. "Former President Trump is the first to do that," Zandi added, expressing confusion over this approach.

During Trump's presidency, the S&P 500 experienced significant drops, most notably a 12% plunge on March 16, 2020, amidst fears related to the spread of the Covid-19 pandemic in the United States. This volatility during Trump's term raises questions about the correlation between political leadership and stock market behavior.