Trump reiterates tax cut commitment while reducing direct federal stimulus

📰Reuters reporter Carolina Mandl called us for our economic commentary and opinion during President Trump’s address to Congress this evening. Article by Carolina Mandl and Suzanne McGee.

🎙️QUICK THOUGHTS
⚖️With proposals for a balanced budget, tax cuts, no tax on Social Security, and car interest deductibility for US-made vehicles, President Trump’s stated economic policy suggests a focus on revitalizing a business and consumer-driven economy while reducing direct federal stimulus.

📊Investor reaction may overall be positive since disposable income may rise when these policies are passed. Although President Trump didn’t seem to announce a solution for inflation itself, higher take-home incomes should ameliorate the effects of higher prices.

🌎The reciprocal tariffs, taxes, and barriers mentioned should not be much of a surprise.

🗺️Trump’s statements however seem to open a door or path for other countries to eliminate tariffs if they reduce their own protectionist policies.

💵Market participants may interpret a walking back of tariffs as an economic positive since tariffs often act as a tax and economic dampener.

QUOTED EXCERPT
“Cutting taxes … will incentivize business spending as long as corporations believe the consumer will be there to spend,” said Michael Schulman, chief investment officer at Running Point Capital Advisors. “Investor reaction should overall be positive since disposable income may rise when these policies are passed.”

ALSO QUOTED WERE
🟠Anthony Saglimbene, Chief Market Strategist, Ameriprise Financial
🟠JJ Kinahan, CEO, TastyTrade Brokerage
🟠Art Hogan, Chief Market Strategist, B. Riley
🟠Jason Britton, MBA, CSFA, President, Reflection Asset Management

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PPLI and PPVA managed separate accounts,
UHNWI, wealth management, estate planning, investing, taxes, economy

We all live under the same sky, but we don’t all have the same horizon.

Konrad Adenauer, first chancellor of the Federal Republic of Germany from 1949 to 1963

Disclosure: The opinions expressed are those of Running Point Capital Advisors, LLC (Running Point) and are subject to change without notice. The opinions referenced are as of the date of publication, may be modified due to changes in the market or economic conditions, and may not necessarily come to pass. Past performance is not indicative of future results. Forward-looking statements cannot be guaranteed. Running Point is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Running Point’s investment advisory services and fees can be found in its Form ADV Part 2, which is available upon request. RP-25-51