Donald Trump to call critics bluff

President Donald Trump has been under extreme pressure over the last few weeks with both domestic and international problems to address. The surprise repeal of his health care reform bill was simply a way of saving face when it became obvious it did not have the required support to go through. This act alone spooked many investors and we saw what many now see as an end to the “Trump rally” on the stock market. However, Donald Trump has regrouped, rethought his strategy and announced new plans for the rest of the year.

Healthcare reform before tax and infrastructure

When Donald Trump was campaigning for office, not only did he focus on healthcare but also the US tax system and plans for significantly greater infrastructure spending. The idea was that tax reform would lead to greater investment in the economy and infrastructure spending would increase employment opportunities. These three policies, together with his often controversial views on immigration, were seen as the main talking points in his battle with Hillary Clinton.

Donald Trump to call critics bluff
Has healthcare become a political football?

Investors are still optimistic that Donald Trump will deliver on his promises in the medium term but he does seem to have pulled a rabbit from the hat with his latest strategy.

Pressure on politicians

Republicans and Democrats will be under extreme pressure over the coming weeks and months because Donald Trump has said that his healthcare reforms will need to be passed before he moves on to tax and infrastructure spending. This will likely create a better atmosphere in which to come to some kind of mutually acceptable arrangement for changes to the Obamacare reforms. There are some politicians who believe he has not gone far enough with his reforms while others believe he has gone too far. So, how can rival politicians stand in the way of much sought after tax and infrastructure policies by delaying healthcare reforms?

There is every chance that this move by President Trump will be successful because he is shifting the pressure from himself to other politicians. He can, quite rightly, stand in front of the US electorate and claim that rival politicians are delaying his healthcare reforms after which he will then move on to tax and infrastructure spending. Against this backdrop, surely his most ardent critics will feel the need to give some ground on health?

Taking back control

One thing we will see during Donald Trump’s presidency is his ability to think outside of the box and do the unexpected. He will be controversial, he will likely be heavily criticised at times but in many ways he is a breath of fresh air from the stereotypical US president of years gone by. This is a man who has experience in business, has been there, done it and bought the T-shirt. Quite why some rivals are suggesting his business experience is a negative is bizarre to say the least.

Both Democrats and Republicans thought they had Donald Trump over a barrel when they effectively blocked his recent healthcare reform bill but he has bounced back. Markets did take a short breather from their relentless rally since his election victory. It will be interesting to see whether the rally restarts again if his risky but sensible strategy for the rest of the year is successful.

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