President Donald Trump Just Proclaimed That "Inflation Is Way Down," but Federal Reserve Economists Have a Different Take

Detailed summary

From a purely statistical standpoint, Wall Street has relished having Donald Trump in the White House. The average annual return of the timeless Dow Jones Industrial Average (DJIN…

From a purely statistical standpoint, Wall Street has relished having Donald Trump in the White House. The average annual return of the timeless Dow Jones Industrial Average (DJINDICES:^DJI), benchmark S&P 500 (SNPINDEX:^GSPC), and tech-driven Nasdaq Composite (NASDAQINDEX:^IXIC) is decisively higher under Trump than under most other presidents over the last 130 years.

There's little question that the evolution of artificial intelligence (AI) and the ongoing AI infrastructure build-out have been paramount to this outperformance in President Trump's nonconsecutive second term. The president's favorable tax policy -- the Tax Cuts and Jobs Act permanently lowered the peak marginal corporate income tax rate from 35% to 21% -- has played an important role, too.

Missed AI's "Act 1"? Act 2 Could Be 16x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005.

Opening of the article, excerpted from Yahoo Finance. To read the rest, open the article on the publisher's site.