Kevin O’Leary, Chairman of O’Leary Ventures, has proposed a three-part plan to help stabilize markets amid ongoing volatility.
What Happened: O’Leary’s strategy, which he calls a three-part “witches’ brew,” begins with the need for a significant trade deal, which he sees as a crucial step towards market stability.
He praised the White House for considering various trade proposals, but underscored the importance of an actual agreement. “We need more than just the jawboning 18-paper deals. We need to sign one, India would be good,” O’Leary suggested on the show, “Mornings with Maria,” on Fox Business on Wednesday.
However, he emphasized that China should be the primary focus, which is also the second part of his strategy. O’Leary interprets Trump’s actions as an attempt to extend an olive branch to China, a move he considers “necessary” to bring Chinese leaders to the negotiation table.
The final part of O’Leary’s “witches’ brew” involves ending discussions about potentially dismissing Federal Reserve Chairman Jerome Powell. “No more firing the Fed idea. That is not helpful to the markets…we’ve got to leave that alone,” O’Leary stated.
He believes that until a deal is signed, a resolution with China is reached, and the “firing the Fed” rhetoric is completely eliminated, the markets will remain “stuck in a range.”
SEE ALSO: ‘It’s Not Going To End Well’--Former SEC Chair Gensler Says Chinese Are ‘Tough Negotiators’ Who Believe They Can Outwait US Policy Volatility
Why It Matters: O’Leary has expressed strong support for Trump's trade policies, particularly regarding China and dismissed the idea that tariffs are harming American companies. Previously, the Shark Tank celebrity had referred to the European Union's "zero-for-zero" tariff proposal on industrial goods as a significant opportunity for Trump to de-escalate trade tensions.
President Donald Trump‘s tariffs, which have soared up to 145% on imports from China, have ignited a trade war with significant retaliatory tariff increases against U.S. imports. Trump has hinted at a decrease in these tariffs, but not to “zero.” The tech-heavy NASDAQ 100 climbed 2.28%, while the S&P 500 climbed 1.67%, amid investor optimism on Wednesday.
However, the optimism could be short-lived as China's Ministry of Commerce on Thursday, has denied any ongoing bilateral trade negotiations with the U.S., contradicting claims of progress in such talks.
- READ MORE: Trump Offered An Olive Branch Twice This Weekend, Says Kevin O’Leary--It’s Time For China’s Xi To Take It – Benzinga
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
