USA After Trump And Dollar Collapse

Trump's Economic Policy: The Fed Takeover and Its Consequences

President Donald Trump's attempt to remove Federal Reserve Chairman Jerome Powell has sparked widespread debate among economists. Powell has resisted Trump's demands for interest rate cuts, leading to speculation about his potential dismissal. The Trump administration has hinted that Powell could be replaced by Scott Bessent, a known supporter of Trump's economic policies.

Can the Fed Lower Interest Rates?

U.S. government bond yields have risen significantly, and markets are awaiting the Fed’s response. While the Fed has the authority to lower rates, its independence has been called into question due to Trump’s pressure. Powell has emphasized that decisions are based on economic data rather than political influence

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Trump's Puppet Leadership in the Fed

Trump's attempt to appoint loyalists to the Federal Reserve has raised concerns about the central bank’s independence. If Trump succeeds in reshaping the Fed entirely with his allies, it could lead to aggressive rate cuts and large-scale money printing, potentially weakening the U.S. dollar and fueling inflation.

The Fed Begins Printing Dollars – What Does It Mean?

If the Fed starts printing large amounts of dollars, it could result in a decline in the dollar’s value and instability in bond markets. Inflation may also increase, forcing the Fed to tighten monetary policy later.

The Future of the Bond Market

Trump's policies may cause long-term interest rates to rise as investors demand higher returns to compensate for growing U.S. debt. This could make government bonds less attractive and increase market volatility.

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USD as the Global Trade Currency

The U.S. dollar’s role in global trade is already being challenged by BRICS countries and the euro. BRICS nations are developing a multi-currency system that could reduce the dollar’s dominance in international transactions. If the dollar loses its status, it could impact U.S. economic and political influence worldwide.

The Return of U.S. Manufacturing

Trump’s administration has sought to revive U.S. manufacturing, but tariffs and trade policies could make this difficult. Although investments have increased, many companies struggle with high production costs.

U.S. Political Power in the World

Trump’s economic policies and changes in the Fed's leadership could affect America’s global political influence. If the dollar weakens and the Fed loses its independence, the U.S.’s international leverage could diminish.

U.S. Arms Trade – Reliability in Question?

U.S. weapons are technologically advanced and highly reliable, but delivery schedules are influenced by U.S. government policies. Trump’s administration’s decisions could lead to delays and uncertainty in arms deals, causing many nations to seek alternative suppliers.