Following the US elections, Donald Trump’s stated aim to push economic policies that strengthen the dollar has sparked wide-ranging discussion about potential spillovers for the global economy. The Economist examines how a concerted push to raise American competitiveness through tax reform, deregulation, and budget measures could lift the currency and alter the balance of global markets. In this line of analysis the focus is on how policy signals translate into currency expectations, investment flows, and central bank posture across borders. The analysis underscores that even a measured shift toward a firmer dollar can trigger reactions that travel far beyond the United States, affecting borrowers, asset managers, and policymakers around the world. As observers gauge the likelihood of legislative action, markets will watch how swiftly proposals are translated into policy, how decisively the government pursues market-friendly reforms, and how the Federal Reserve responds to a changing fiscal outlook. The piece highlights the interconnected web of consequences that a dollar-tightening agenda could set in motion worldwide.
