Source: The UnPopulist
by Thomas Firey
“It’s probably the case that investors are shifting their portfolios away from a U.S. economy that seems increasingly endangered by Trump’s presidency. (Further evidence of this: the depreciation of the dollar, the currency used to buy U.S. goods and assets.) They may also fear stagflation and are demanding higher yields because they expect the Federal Reserve will pump up the money supply (and push up inflation) in response. This is not an idle worry given Trump’s browbeating of Federal Reserve Chair Jerome Powell to cut interest rates, even triggering fears that he’ll abuse his executive power and take the unprecedented and prohibited step of firing Powell. But there’s also a possibility of something much worse happening to the economy beyond inflation. Historically, many economic catastrophes resulted from the discovery that some prominent asset wasn’t nearly as sound as people thought.” (04/18/25)
https://www.theunpopulist.net/p/trumponomics-could-bring-far-worse