CNN senior political commentator Scott Jennings told CNN panelists Thursday to stop panicking about the current state of the economy under President Donald Trump’s administration.
Fears surrounding the economy have arisen as the stock market plunged by almost 900 points on Monday and has dipped into correction, meaning it closed down by more than 10%. During the panel, Jennings said corrections are relatively common and praised other aspects of the Trump economy.
“Corrections are not unusual,” Jennings said. “I mean, during the bull market from 2009 to 2020, I think we had 5 corrections during that period. We even tend to have them every couple of years. It’s not unusual, they tend to be cyclical. There are other signs in the economy that are helping real people. Wholesale inflation is down, consumer inflation is down, gas prices are decreasing, mortgage rates [are] coming down. Egg prices are $4.89 today, they were $6.85 on Jan. 21. We’ve seen manufacturing jobs in the last job report go up, private investment announcements are going up, and a whole bunch of nutty climate regulations have been eviscerated by this administration.”
“So, the stock market is one measurement. It’s not unusual for corrections to occur, but there’s a whole bunch of green shoots that we can look to and say there’s some optimism to be had,” Jennings continued.
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Jennings explained that the tariffs will encourage American companies to re-shore their manufacturing, but noted that it will not happen immediately.
“I don’t think anyone should be hysterical over the stock market over one day or six weeks. Corrections occur, and then the markets move around. But this idea of trying to stimulate more manufacturing in the United States, that’s the plan and [Trump] thinks it will work,” Jennings said.
The stock market slid over the week after Trump has threatened to impose tariffs on Canada, Mexico, and China, including 50% tariffs on Canadian steel and aluminum imported to the U.S. The president said Wednesday that stocks have gone down due to the record high inflation and wars that broke out during former President Joe Biden’s administration.
While markets are down, the Trump administration has received good news about other aspects of the economy. Inflation slowed in February as the Consumer Price Index (CPI), a measure of the price of everyday goods, increased 2.8%, according to a Bureau of Labor Statistics (BLS) report released Wednesday.
During Biden’s term, inflation soared from 1.4% in January 2021 to a peak of 9% in June 2022, while prices increased by 20% in May 2024. Many economists blamed the administration’s excessive spending for fueling inflation, including the $1.9 trillion American Rescue Plan and the $750 billion Inflation Reduction Act.
The Producer Price Index, a wholesale inflation measurement, substantially slowed in February in comparison to the previous month. The price of energy fell 1.2% and wholesale egg prices were up 10.4% in February, down from a 15.2% increase in January.
Gas prices, which reached record highs during the Biden administration, are falling with its average standing at $3 per gallon. National gas prices exceeded $4 a gallon during Biden’s term, and remained high throughout his four years in office.
Environmental Protection Agency (EPA) Administrator Lee Zeldin also announced plans scrap several of the Biden administration’s policies that placed strict regulations on power and coal plants in order to “unleash American energy.” One of these changes includes reconsidering regulations on the Greenhouse Gas Reporting Program, which “imposed significant costs on the American energy supply,” according to a press release by the EPA.
Biden’s economy largely contributed to Trump’s victory in the 2024 election since it proved to be a top issue for voters. The economy largely led Trump to make historic inroads with Latino, black and blue collar voters.
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