As 2026 unfolds, the Trump administration is aggressively pursuing policies to reshape global asset pricing and secure a political advantage in the upcoming midterm elections. Senior analyst David Woo highlights that Trump's strategy focuses on drastically reducing oil prices to $2.25 per gallon by controlling energy resources, notably through actions in Venezuela. This move aims to curb inflation and stabilize the cost of living, potentially driving crude oil prices down to $40-$50 per barrel.
In addition to energy strategies, Trump is expected to implement a large-scale fiscal stimulus, using tariff revenues to issue $2,000 rebate checks to lower-income Americans. This approach seeks to transform the economic landscape by boosting consumer spending and reversing the "K-shaped" recovery. However, these measures signal the end of the rules-based international order, increasing geopolitical risks and supporting gold as a hedge against instability.
Despite these efforts, Woo warns of significant risks, including a potential stock market correction and an AI bubble burst, which could undermine Trump's re-election prospects. The administration's focus on affordability and economic stimulus reflects the high stakes of the 2026 midterms, with potential implications for global markets and U.S. fiscal policy.
Trump's 2026 Strategy: Lower Oil Prices and Fiscal Stimulus Amid Midterm Pressure
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