The West predicts unrest around the world due to Trump’s economic policy

The West predicts unrest around the world due to Trump’s economic policy

The magazine wrote that it is not yet clear what Trump’s economic program is, but the growth in American stock markets gives indications of what investors expect, as the S & P 500 index broke successive records on November 6, 7, and 8.

Traders believe that US corporate profits will increase under the new administration due to lower taxes. However, the combination of rising deficits and renewed inflation may force the Federal Reserve System to maintain high interest rates.

The magazine added: “The rise of the dollar often goes hand in hand with the deterioration of the outlook for the global economy. One reason for this is that in times of economic turmoil, investors tend to sell their risky assets and invest in those they consider safe, especially the dollar and US Treasuries. While deteriorating expectations tend to strengthen the dollar, a rising dollar often also worsens expectations. .

According to the magazine, the strong dollar hurts domestic manufacturers due to high interest rates, but it is not easy to influence them due to strong investor demand even despite Trump’s attempts to achieve this.

She concluded by saying: “As long as interest rates remain high, the US currency will remain a preferred haven for investors and a severe problem for the world.”

Source: Novosti

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**Interview with Economic Expert Jane Doe**

**Editor**: ⁤Thank⁤ you​ for joining us today, Jane. The recent ⁣surge in the S&P 500 index has raised‌ some eyebrows, especially with speculations​ surrounding Trump’s economic policies. Can you share your insights on what ⁢this might indicate about investors’ expectations?

**Jane Doe**: ⁤Absolutely. The stock market’s performance suggests that⁣ investors are optimistic about companies’ profitability under the new administration, likely anticipating tax cuts. However, there’s a significant caveat—while ‍these corporate profits may rise, ‍the simultaneous increase in deficits and inflation could lead to the Federal Reserve maintaining high interest rates, which poses a complex scenario‍ for‌ the economy.

**Editor**: Interesting point. ⁢And ‌when we talk about the strength ​of the dollar, how do you see this impacting⁢ domestic manufacturers and the global economy?

**Jane Doe**: A strong dollar⁢ can indeed put domestic manufacturers ‍at a disadvantage. High⁣ interest rates may exacerbate this impact, making it difficult for ⁣them​ to compete internationally. While Trump’s administration‍ has made efforts to manipulate this dynamic, strong investor demand for the dollar often overshadows those attempts, leading to complications both ⁤domestically and globally.

**Editor**: Your analysis raises critical questions. Given these factors, do you think the potential for​ unrest in the global economy is justified under Trump’s economic policies? Are we looking at a scenario that​ could​ create more instability rather than⁤ growth?

**Jane Doe**: That’s a great question.‍ The intertwining of high interest rates, a strong dollar, and rising deficits does indeed ​paint⁣ a picture of uncertainty. While the ⁣initial market reactions may⁣ suggest optimism, ⁣the long-term‌ implications could lead to unrest—especially for countries that rely heavily on exports. If the situation escalates, it could spark significant debates on⁤ economic strategies both at home and abroad.

**Editor**: This brings us to our readers. How do you think they view the potential ⁣consequences of Trump’s economic direction? Are they leaning towards optimism, or are they wary of potential ⁣unrest in light of these economic ‍indicators?

**Jane Doe**: I encourage our readers ⁤to reflect ‍on this. Are ⁣they optimistic about the corporate sector’s growth, or do they see ⁢warning signs that could lead⁤ to broader economic challenges? This is the crux of ​the debate, and it’s essential for citizens ⁣to engage ⁤in ‌these discussions moving forward.

**Editor**:⁢ Thank you for your insights, Jane. This certainly invites a deeper conversation about the ‍future of the ‌U.S. economy and its global implications.

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