Has Trump damaged the dollar?

Trump’s tariffs have caused the American stockmarket to dip, bond yields to go up and the dollar to fall. All three happening at the same time is a red flag for economists. Has the president permanently hurt America’s economy? Our Economics editor Henry Curr shares his take on The Intelligence podcast

00:00 - Why the financial markets’ reaction to Trump’s tariffs are concerning
02:31 - What Trump’s administration thinks of the dollar as the world’s reserve currency
04:17 - What might happen now?
08:40 - What could take the dollar’s place as the world’s reserve currency?
11:50 - Has the damage already been done?

[FunkAndFluff]

Short answer: Yes, Trump has damaged the dollar.

[danieldejong]

If Treasury bonds are being sold off, the stock market is going down, production is slowing and the dollar goes down... kaboom. And the Treasury bonds purchase period is coming up and no one seems interested in funding the US economy anymore. There is one person to blame.

[sharpfocus]

When trust goes, you don't get it back in a day.

[DonaldMark-nese]

Three years ago, nobody could have foreseen the current state of the U.S. dollar. The U.S. continues to repeat the same mistakes that have led to the dollar's current situation. As a result, there's no guarantee that the dollar's future will be as bright as it's hoped to be.

[scotpa]

Q:"Can America's political system react and stop the slide?"
A: No. Republicans in Congress are not capable of doing anything their Dear Leader doesn't like.

[alexsteven.m]

If Trump is advocating for economic chaos, it could be part of a strategy in which market crashes are perceived as chances for the ultra-rich to acquire assets at reduced prices. Annually, those with substantial capital tend to benefit disproportionately during periods of volatility

[LizaPhilips]

Now that the markets has grasp that Trump is serious about tariffs, it’s going to hit hard. If the US cuts itself off from global trade, that isolationism is going to send shockwaves

[leondonald]

With market uncertainty, Gold seems smart. I’m considering $150K for retirement, short-term gains are tempting, but long-term strategy is key.

[lono]

"Has Trump damaged <insert any average civilian interests>"

Yes

[AdriánRicardo-ov]

Always kept an eye on crypto, hesitated due to its volatility despite being a long-term stock investor. Now that it's mainstream, I want in. How can a beginner navigate the crypto space with all these talks of a retrace? i don't want to buy the top

[oldnoname]

just here to say THANK YOU for a video version of this phenomenal show. I've hoped for one for years!

[ElectroOverlord]

Been screaming to my financial advisor at Merrill about this, she is a friend, but I have been screaming that the entire world is tired of the US and the dollar will NOT be safe.

[Farmwald]

This trade war has to be one of the dumbest in history. Prices are already out of control, and now with these tariffs, everyday essentials are just going to get more expensive. It feels like regular people are paying the price for political games.

[dennisnguyen]

Has the American people, who voted for Trump, damaged the dollar? Don't blame one person, blame the entire country. We, the American people, are the reason why we are where we are. The American people did not live in a dictatorship. We voted for all the politicians.

[MH-pzwf]

If they are smart, they would unload US treasury to derisk their investment or pension funds gradually but frequently at a steady pace. Especially, after the tax cut passed this year that is projected to double the US debt deficit. Investors would need much higher yield to hold the risky US treasury bills.

[Nebukadnezzer]

The basis for any kind of relationship is trust, including economic and financial. This trust has been damaged beyond repair.

[bmonck]

Thank goodness for some calm informed comment. Totally agree damage is real and long term. Risks are high Thanks

[tonysilke]

The system is failing as a result of both government and federal policy. In the next days, the banking crisis would have to be epic and gigantic for the FED to decide not to raise interest rates. This won't happen; an increase and a crash are coming. There will be more negative portfolios this 2nd half of 2023 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?

[PennyURThougths]

What a wonderful and timely and thoughtful discussion! Thank you!

[alex-reax]

Henry Curr Please make your own podcast and explain economy in a simple way. you're the only one that giving the comperhensive information.