Trump has undermined American economic exclusivity

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In his first address to Congress since the start of the stormy second term, US President Donald Trump proudly claimed that he was “just beginning” on Tuesday. This is a bad sign for the world’s largest economy. Optimism among companies and investors who came with the victory of the businessman’s election is rapidly diminishing. After the president confirmed the tariffs for Mexico, Canada and China on Monday night, the S&P 500 initially erased all the profits he made from the November elections. Consumer confidence was immersed. Manufacturers report The steep is reduced in new orders and employment, and the bearish departments of investors are much higher than their historical average.

The uncertainty lies in the clutter of data and forecasts. However, it is clear that the president has shot a decent economic heritage. Not long ago, the price pressure faded away, the US Federal Reserve was on the reason of the permanent rate of reducing the rate in the elastic economy, and the S&P 500 slid up. This is not the case.

The depressing turn is a product of search for the administration for the duties of introducing and chaotic policy. The White House may believe that it has a plan, but the economic exceptionality of America: from the relentless consumer expenses and the prosperous stock market to the reputation of reliable economic governance, is a key.

Personal Costs – Construction Growth in Last American Four years. When the inflation of the pandemic pandemic has not yet fallen, and the reality of the tariffs for rising Trump prices that are now reduced, consumer expectations for inflation have grown next year. The Fed still responded to the upcoming price pressure, putting a decrease in the rate, leaving borrowers facing the higher credit costs. The planned clear detection of public sector employees Elon Musk also intends to increase unemployment in the already cooling labor market.

Animal spirits are also under pressure. It may be naive that many businesses and investors expected import duties to be just a tool for negotiations. But Trump also believes that tariffs for “protection of American jobs”. After the last on Wednesdayand moved to expand it On Thursday.

The unpredictability of the tariff reversals, reversals and steps against other trading partners does not allow businesses to plan. Responding measures will also be detrimental to exporters. A wider flow of the policy of which had significant geopolitical consequences-it adds to the paralysis of decision-making facing the halls and merchants.

Faith in US economic and financial institutions is also checked. Trump filled the regulatory bodies with his Cham. Fed’s independence is concerned. Then there are legal economic ideas: from the creation of the cryptocurrency reserve to rumors “Mar-a-lago-acorom” to depreciate the dollar. Some analysts point out that the recent dollar weakness against the background of economic turmoil suggests that financial markets may start questioning the status of a safe currency asylum.

It is true that the reduction of the administration’s taxes and the efforts of deregulation will not start yet. But since they are likely to be combined with tariffs for more trading partners, the development of policies and the transition to undocumented immigrants-which make up 5 percent of workers-optimism around the closest US economic growth feels more like blind hope. The contours of the economic agenda have aggravated. It’s worse than everyone thought, and it is only six weeks.