Tags: Jack Bogle | Donald Trump | Economic Growth | Target

Vanguard's Jack Bogle: Trump's US Growth Target 'Not Possible'

Vanguard's Jack Bogle: Trump's US Growth Target 'Not Possible'

 (AP/Mark Lennihan)

By    |   Friday, 03 March 2017 02:20 PM

Investment guru Jack Bogle has told the BBC that President Donald Trump's plan to grow the U.S. economy by 4 percent a year is probably "not even possible for anybody."

The founder and retired CEO of The Vanguard Group critiqued several strands of Trump's policy mix during a wide-ranging BBC interview this week, CNBC.com reported.

Bogle told the BBC the president's campaign promise for the American economy seemed fanciful, CNBC reported.

"Anybody that wants to make the U.S. economy grow at 4 percent a year in real terms has a big job to do. I don't think it's even possible for anybody," Bogle said.

Bogle also warned that "administration rhetoric over regulation" was a concern, CNBC reported.

"I think reducing regulations is a reasonable thing to do if you do it the right way, but eliminating regulations is some sort of madness," Bogle said.

And highlighting that he himself is the child of an immigrant, Bogle questioned the trade and border policies emanating from the White House, CNBC reported.

"I think increasing trade barriers is the wrong way to go for business," he said. "And I'm not making a political statement here, the economics of cutting back on immigration is extremely harmful in the long run for our economy," Bogle said.

Trump's promises to cut taxes and roll back regulation have fueled hopes of a pick-up in the U.S. economy, sending stock markets to record highs, with the Dow Jones industrials up 18 percent since his election victory. 

But hedge fund managers like Seth Klarman, who has been running $30 billion Boston-based hedge fund Baupost Group since 1982, worry Trump's polices may cause a sharp rise in inflation, while his protectionist tone on trade could hit other major economies, Reuters reported.

"We could find ourselves at the beginning of a lengthy decline in dollar hegemony, a rapid rise in interest rates and inflation, and global angst about the stability and wisdom of American leadership," Klarman said in a letter to investors on Feb. 8 that was shared with Reuters.

"The Trump rally – in my opinion – saw global markets price in a huge amount of hope around his campaign promises, while ignoring the knock-on risks to fragile economies like Japan that export to the U.S.," said Shannon McConaghy, a portfolio manager at London-based Horseman Capital.

While his first few weeks have certainly been volatile and controversial, Trump will be a demanding leader who applies the best of his negotiating skills to push for U.S. growth, bestselling author David Horowitz recently told TheStreet.com.

Trump won’t be an ideological purist like Republicans who support free trade but don't fight for fair trade, Horowitz said.

“If you just say, ‘well we're for free trade and we're not going to look at the deals that we make’ -- that's not a good idea,” he said. “We've had an anti-business president now for eight years who doesn't take a hard-nosed attitude towards these deals. Trump is going to get better deals for us, which is still free trade.”

Horowitz's new book, "The Big Agenda: President Trump's Plan to Save America," reveals Trump's "first 100 days strategy" to roll back Obama's legislative and executive record.

Horowitz's new book is the first book about the Trump presidency and has soared to the top of the Amazon bestseller charts, becoming the No.1-selling book on the web. Trump will also lead the way in making infrastructure spending to boost the U.S. economy, Horowitz said.

“If the economy grows as it will under Trump, there's going to be a lot more money to spend,” he said.

"Big Agenda: President Trump's Plan to Save America" is available at bookstores everywhere – or get your copy on Amazon – Click Here Now

(Newsmax wire services contributed to this report).

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Vanguard's Jack Bogle: Trump Growth Target Impossible to Hit
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2017-20-03
Friday, 03 March 2017 02:20 PM
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