Cathie Wood Calls Trump's Tariffs 'Shock Therapy' for Economic Growth

Cathie Wood, CEO of Ark Invest, has characterized President Trump's recent tariff policies as 'shock therapy' that could ultimately lead to freer trade, despite initial fears of economic disaster. In her analysis, Wood suggested that the leadership change in trade negotiations, with Treasury Secretary Scott Bessent taking charge, could facilitate lower tariffs and resolve non-tariff barriers. She emphasized that this volatile situation may be a strategic setup for serious negotiations rather than chaotic policymaking. Wood also highlighted Elon Musk's influence in advocating for solutions to trade barriers, pointing to a potential rebound in economic activity and stock market performance later in the year. She noted that despite the recent market turmoil, there remains an expectation for robust economic growth as the U.S. prepares for the midterm elections. Overall, Wood's perspective presents a more optimistic view of the repercussions of Trump's tariff strategy than many analysts.