President Trump is advocating for a dramatic restructuring of the U.S. economy, accepting substantial risks that could lead to inflation or recession. This 'shock therapy' approach intends to dismantle a long-standing global economic framework in favor of boosting American manufacturing. Key administration figures acknowledge the potential for painful economic adjustments, suggesting a departure from reliance on government spending. However, there are concerns that if the economy begins to falter, no rescue from Washington will be forthcoming, heightening anxiety in financial markets.
President Trump believes it's worth risking pain to achieve his medium-term goal of rewiring the U.S. economy, accepting the potential for collateral damage.
The willingness to shrug off risks of inflation or recession is rattling financial markets and confidence, emerging as the biggest near-term economic risk.
Treasury Secretary Scott Bessent stated there's going to be a natural adjustment as we move away from public spending, recognizing that the economy has become addicted to government spending.
Trump envisions an economy with fewer bureaucratic paper-pushers and more factory work, aiming to reduce the deficit while maintaining low taxes.
Collection
[
|
...
]