USD already lost it's value in Biden's regime due to increase inflation caused by overly hiked interest rates by FED and US Banks.
FED tried to recover USD strength since 2023 November but still is far away from their target of bringing American Inflation below 2% which is still near 2.9%.
Now, Donald Trump introduced Tariffs on all trade partners but so far this policy has impacted USD negatively. Interest rates are already low even FED wants to reduced them further this year. But the issue is that Tariffs have started to increase inflation which can't be rought back just by reducing interest rates.
1. Will USA go out of the way and reduce interest rate to a great extent, 2. will Trump impose taxes on American Public or
3. will tariffs favour USD's strength ultimately?
Three big questions.
Trump’s tariff policies—145% on China, 10% globally—aim to revive the USD by cutting imports and boosting U.S. manufacturing, potentially narrowing the trade deficit and increasing dollar demand. In short, this could lift the USD if markets stabilize. However, recent USD drops (1.1% in a week) reflect fears of trade wars, with China’s 125% counter-tariffs and EU responses risking global growth. Inflation (possibly 4.5% in 2025) and higher consumer costs ($1,300 per household) could spark a backlash, while erratic policy shifts unnerve investors. Past tariffs showed mixed results; success depends on execution and retaliation. Long-term USD recovery remains uncertain.
To get better insight into the subject, please read the Triffin Dilemma/paradox
Η Απόφαση Τραμπ για Δασμούς σε συγκεκριμένα Κράτη που εισάγουν Προϊόντα και Υπηρεσίες στην Αμερικανική Αγορά θα δημιουργήσει ένα Κύμα Πληθωρισμού σε πολλές απο τις Αμερικάνικες Πολιτείες . Όπως και να το αναλύσουμε δεν ειναι δυνατόν οι Ηνωμένες Πολιτείες της Αμερικής να είναι ο Μεγαλύτερος Παγκόσμιος Δανειστής στο (Αόρατο Χέρι) της Αγοράς (Ανταμ Σμιθ) και το Δολλαριο είναι Νόμισμα της Παγκόσμιας Αγοράς . Μερκαντιλισμός με Παγκόσμιο Νόμισμα δεν συνάδει . Θα ειχε νόημα η απόφαση τραμπ εαν και εφόσον η αγορά της Αμερικής διέθετε ενα Νόμισμα μικρότερης εμβέλειας και δυναμικής .
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