Trump's 2026 Strategy: Lower Oil Prices and Fiscal Stimulus Amid Midterm Pressure

News Flash 2026-01-12 10:46

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.

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This content is for informational purposes only and does not constitute investment advice.

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