Trump to Tout Strong Economy in State of the Union

President Donald Trump, battling a probe into his campaign’s alleged ties with Russia and struggling to sell Americans on his leadership abilities, will take credit for U.S. economic gains in the past year in an address to Congress on Tuesday night.

Facing a deadline on an immigration controversy and strong Democratic opposition, Trump will also call for a bipartisan compromise of the type that has eluded him during a turbulent first year in office marked by partisan battles.

Trump will visit Capitol Hill to deliver his first State of the Union speech at 9:10 p.m. (0210 GMT on Wednesday).

Aides said the Republican president would use the televised speech to tout the benefits of a tax overhaul approved by the Republican-controlled Congress in December that was his first major legislative victory.

“The economy will be front and center,” White House spokeswoman Sarah Sanders told NBC News on Tuesday.

The atmosphere in the House of Representatives chamber where Trump will speak could be tense. Several Democratic lawmakers have said they would boycott the event. Some Democratic women who will attend plan to wear black in support of the #MeToo movement against sexual harassment.

Ahead of Trump’s speech, Republicans and Democrats were deeply divided over immigration. Lawmakers are facing a Feb. 8 deadline to reach a compromise on the issue and pass a new budget measure to avoid a second government shutdown.

To attract Democratic votes for an immigration deal, Trump has said he is open to letting “Dreamers,” a group of immigrants brought into the country illegally as children, stay in the United States.

In return, he has demanded funding for a wall on the border with Mexico and measures to curb family sponsorship of immigrants, proposals that have failed to gain traction with Democrats in the past.

U.S. Senator Dick Durbin, the No. 2 Democrat in the Senate, said so far the two sides had made little progress in bridging differences on immigration.

“We didn’t agree on anything,” Durbin said after a meeting with Republican lawmakers on Capitol Hill on Monday.

RUSSIA PROBE

Trump will also promote a $1.7 trillion plan to rebuild America’s aging roads and other infrastructure, but he is not expected to offer many details.

He will speak at a time when he is being buffeted by a drumbeat of headlines about U.S. Special Counsel Robert Mueller’s investigation into whether Trump or his aides colluded with Russia during the 2016 presidential election.

U.S. intelligence agencies have concluded that Russia interfered in the campaign using hacking and propaganda to attempt to tilt the race in Trump’s favor. Russia has denied meddling. Trump has denied any collusion with Russia and has called the Mueller’s investigation a “witch hunt” and “hoax.”

Americans, at the same time, are voicing concerns about Trump’s fitness for office. His job approval ratings are about 40 percent, an alarming number with congressional elections in November that will determine whether Republicans maintain control of the U.S. Congress.

“We hope the president focuses on economic growth and accomplishments and leaves out the drama,” said Republican strategist Scott Reed.

Trump is expected to address the various global crises that have persisted during his watch, such as North Korea’s nuclear challenge and Iran’s clout in the Middle East.

His drive for more reciprocal trade with China and other countries is expected to be a dominant theme. Trump has so far been unsuccessful in lowering U.S. trade deficits around the world.

Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell