The unpredictable political decisions and statements of US President Donald Trump are a serious threat to the dollar’s dominance in the global economy for the past 50 years, former US Treasury Secretary Lawrence Summers said in an interview with Bloomberg.
According to the interlocutor, the US dollar has been the central currency in the global economy, but now its role is under threat due to the broad approach that is being applied to the rest of the world.
Summers drew attention to the fact that at the beginning of this week, the US stock market saw a decline in stock prices. This became a signal to investors that they are concerned about the future of American policy. He also expressed his dissatisfaction with the policy of the US Department of Energy aimed at reducing government spending. According to the expert, such measures as reducing the number of IRS employees could negatively affect efforts to increase revenue.
The expert also emphasized that last year, Trump and his election campaign outlined several key aspects that could improve the economic situation. Among them are reducing the level of regulation and solving problems that previously allowed the US to gain trade advantages. However, Summers said he is concerned about the methods the country uses to achieve these goals.