While the global community closely watches the progress of the COP29 climate summit, news about Donald Trump’s political ambitions and his plans for future presidency continue to concern experts. It is known that Trump is actively discussing his future first steps in case of returning to the White House, and this pertains not only to domestic, but also global changes, particularly in the economy.
The strength of the dollar – how will it impact the world economy?
Analysts from the renowned publication The Economist are already expressing concern about the potential consequences of Trump’s policies. One of the main ideas is the reduction of taxes and the strengthening of the role of the Federal Reserve System (FRS) through high interest rates. As a result, this could significantly boost the profits of American companies and simultaneously increase the attractiveness of investments in the dollar. However, the strengthening of the dollar’s position could create risks for the economies of many countries, as a strong dollar could outperform other currencies and lead to financial instability.
“The strengthening of the dollar is often accompanied by deteriorating prospects for the global economy,” The Economist emphasizes.
If Trump implements such changes, the economies of many countries could face difficulties, while American manufacturers, on the contrary, will feel increasing pressure due to tough competition from foreign companies.
Who will be the Secretary of the Treasury?
Among the potential candidates for the position of the head of the US Department of the Treasury, the media mentions Robert Lightizer and Scott Bessent. Robert Lightizer is known for his tough trade stance towards China and his desire to protect American interests, so his appointment could lead to new twists in trade tensions. Scott Bessent, on the other hand, is a proponent of a more cautious approach and has a reputation as a financial analyst with strategic thinking. His policy is likely to focus on stabilizing the US financial market.
Biden’s Executive Orders Review – A Shift Towards Change
The media also reports that if elected, Trump may revoke dozens of Joe Biden’s executive orders, which he believes have been the main cause of the economic crisis. This decision could drastically change the economic course of the US and impact social policy, energy, healthcare, and other sectors. Specifically, changes may pertain to the country’s energy independence, which could pose a serious setback to the “green transition” supported by Biden.
Should the World Be Concerned?
Trump’s economic policies may have global consequences that will affect everyone—from ordinary citizens to major international corporations. Strengthening the dollar could impact exports, currency exchange rates, and the financial stability of many countries, especially those dependent on the American market.
And although Trump’s initial steps upon returning to power remain unknown, the international community is already closely monitoring the situation, as potential changes in US policy could lead to significant economic and political implications for the world at large.
