The dollar’s decline and gold’s rise signal dissatisfaction with Trump’s policies, warns ex-IMF official. U.S. could face financial crisis before midterms. U.S. fiscal situation shaky before Trump’s second term; tax cuts add trillions to deficit. Dollar fell 10% in the first half of the year, worst since 1953. Gold up 25%, Treasury yields high.
Markets lack faith in U.S. economy due to Trump policies. Tariffs and Fed pressure weaken dollar. Financial markets show no confidence in administration. Trump may face dollar and bond-market crisis before midterms. Wall Street alarmed by tariffs, inflation, deficits, debt, dollar, and Treasuries demand. Tariffs haven’t spiked inflation yet.
Bond vigilantes haven’t demanded higher yields on bonds. Analysts predict dollar to retain reserve currency status. Market efficient at pricing risks. Concerns about debt impact on borrowing costs. Uncertain when worries will materialize. Market good at pricing in concerns.
Financial markets lacking confidence in Trump administration. Dollar’s fall and gold’s rise indicative of crumbling trust. Concerns about debt impact on borrowing costs. Market efficient at pricing risks. Uncertain when worries will materialize. Market good at pricing in concerns.
Read more at Yahoo Finance: Markets can’t be bullied, and the US could face a financial crisis ahead of next year’s midterm elections, former IMF official says