Open the newsletter to watch the White House for free
Your guide to what the second period of Trump means to Washington, business and the world
The Chairman of the Financial Control Authority in Congress warned, warning the head of the Congress, warning the head of the World Financial Agency in Congress, warned the head of the International Financial Supervision Agency in Congress that the “Wall Street Rick” raised by the trade war Donald Trump could be a “turning point” for the desire of foreign investors to maintain the assets of the United States.
“Even when we go away from April fluctuation, it will remain a memory,” Philip Sagel, director of the Congress Budget Office, told the Financial Times. “Something we are trying to discover is whether there will be a permanent hesitation between global investors while looking at the United States.”
The “Tahrir Day” tariff in Trump on April 2 sparked sharp fluctuations in the US government debt and stock markets, with the S&P 500 to 15 percent and the rise in borrowing costs.
The markets stabilized after Trump stopped most of the acute “mutual” fees, but concerns have remained that irregular political transformations of the president can burden the enthusiasm of foreign investors of American assets. The stocks in particular have surpassed global markets in recent years, prompting international investors to take great positions in them.
Swagel said that international investors’ passion for assembling American assets “supports us growth, supports job creation” and facilitates the government’s ability to finance the large budget deficit in the country and sell US government debts.
The Central Bank of Oman is working on a group of 10 years growth and financial expectations, which will be scheduled in the summer, which will provide the first comprehensive assessment of the Trump administration’s economic agenda at a time when Fears On the government’s money many.
CBO director said that he has not yet determined whether the sale of assets in the United States and the dollar, which was raised by the April 2 tariff, will have a permanent impact, saying that difficult data has not provided few evidence yet.
“Will we look at this as a kind of turning point that really led to major changes in the global economy and a decrease in the United States? Or will this be a volatility that is overcome by other policies that improve growth (such as tax cuts, disruption) and more stability?” He said.
The United States has obtained the first deal this week since Trump launched his trade war, as it has held an agreement with the United Kingdom. But investors have been concerned about Washington’s ability to conclude deals with larger commercial partners such as China. They are also waiting for how to play the other leading policies of the president, including tax cuts and cancellation of organizational restrictions.
“It is normal for us to think about the customs tariff given the fluctuation of April, but there are many other aspects of the American economy. It may be the part of the stable tariff and then the administration makes progress in other regions,” said CBO director. “This will be a positive result. Or we can look back and say, that was the beginning of a period of slower growth.”
“It is part of the constellation of fears that the frequency between global investors in the position of capital in the United States, or even to restore balance in a way that reduces their interest in US securities, will affect the dollar,” Salal said.
Feelings were among senior global financial officials – many of which are countries with large dollar reserves – in this year’s spring meetings to attend the International Monetary Fund and the World Bank “the most negative that I can remember.”
He added: “Since then, I feel that the feelings have moved from a supercomputation to further waiting and enjoyment. That is why this has improved.”
The Trump administration has recognized “short -term pain” from the definitions, but it believes that its price deserves to be paid for re -manufacturing. It also tells the possibilities of fees to increase revenues and reduce the federal deficit.
Treasury Secretary Scott Payette plans to raise the deficit from 6.4 percent in 2024 to 3 percent by the end of the second term of the president.
Swagel said that “it is certainly possible” that the Treasury Secretary can reach his goal. “A combination of stronger growth and spending together can reduce the deficit. How much depends on the details.”
CBO is awaiting the approval of the main budget scale, known as the “reconciliation” bill, to assess the impact of new management policies before producing its summer expectations.
Her previous outlook, published in March, showed her afternoon debts at the Second World War later in this decade.
“We just need to wait and see what comes out,” Sagel said, adding that her expectations also depend on the course of interest rates and discounts by Elon Musk, the so -called “Ministry of Government efficiency.”
Trump wants the draft law to be approved by July 4.
The bill is scheduled to include measures that would make tax discounts that were enacted during Trump’s first permanent term – which CBO said will add 6 meters to deficit over the next ten years.
The Central Bank of Oman said that a 10 percent blanket tariff will reduce the deficit by 2.2 trillion over the next ten years. But the higher fees will not necessarily raise revenues with proportional amounts.
“From a global tariff of 10 percent to 20, revenues will not exceed 1 to 1,” he said. “At some point, if the high definitions are sustainable, it will have broader (negative) economic effects.”
https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2F8115d597-59ed-479d-87e4-a5d7f5b8e5cd.jpg?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1
Source link