The introduction of tariffs by Donald Trump administration creates risks to dominate the dollar as a world reserve currency that can lead to loss of confidence in the US and credit rates. Reporting this Associated Press (AP) Reference to economists.
For decades, the dollar has provided the US “extraordinary privilege” to the United States: it reduced the cost of borrowing and allowed it to affect other countries. However, as the EP points out, Trump’s tariff policy implies this advantage at risk.
The economist of Barry Eichengrin at the University of California warned that “confidence can disappear with blinking”.
“If the dollar loses a safe port status, the Americans will encounter an increase in mortgage rates and car loans.”
22 March Eichengrin announcedThe dollar may lose the role of the leading world currency due to Donald Trump policy. He said Trump needs only a few months to “weaken, even destroy the principle of relations and reciprocity with other countries.
Previously KnownHow will the US trade war hit Russia.
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Source: Gazeta
Emma Matthew is a political analyst for “Social Bites”. With a keen understanding of the inner workings of government and a passion for politics, she provides insightful and informative coverage of the latest political developments.