Trump Tariffs: Lawrence Summers Says Markets Responding To Potentially The Most Damaging Economic Policy US Enacted Since WW-II

As futures tumbled over the weekend, driven by the Trump administration’s defiant stance on the President’s tariff policies, former Treasury Secretary Lawrence Summers reportedly said that markets are responding to what may be the most damaging economic policy the United States has enacted since the Second World War.

“The policies are going to increase unemployment, they are going to hurt businesses, they are going to increase inflation, they are going to make it harder for the Fed to cut rates,” Summers told CNN in an interview.

U.S. indices witnessed some individual records last week. While the S&P 500 slid 6% on Friday, recording its worst performance since the outbreak of COVID-19, the Nasdaq Composite entered the bear territory, having fallen 22% from its record, according to a CNBC report.

The Dow, too, posted over 1,500-point losses in consecutive sessions for the first time, it said.

On Monday morning, benchmark index futures were trading nearly 2% lower as markets braced for another day of losses.

The SPDR S&P 500 ETF Trust (SPY) traded 1.89% lower in Monday’s pre-market session, while the Invesco QQQ Trust, Series 1 (QQQ) slid 2.12%.

Summers pointed out that what's happening in future markets suggests there's real disappointment that the President is doubling down on his errors.

“That policies that everybody on the outside sees as misguided are simply being reinforced, and that’s very damaging for our economy,” he told CNN.

Summers stated that the Trump administration doesn’t have a coherent message on why it's doing the largest tax increase the country's had in 50 years.

“Usually when you do something hugely consequential, you have a clear rationale that's consistently delivered, and we're not getting that,” the former Treasury Secretary said.

For updates and corrections, email newsroom[at]stocktwits[dot]com.