Why Trump’s economic gamble will force the Fed’s hand
The president’s strategy to crush demand whilst giving US companies a boost is driving the world’s largest economy toward the edge, but it could be all part of the plan.
Donald Trump has always been a showman, a master manipulator of the narrative, and a self-styled dealmaker. But his administration’s latest economic strategy – tightening fiscal policy while handing US companies a windfall – raises a more unsettling question: Do they believe they won’t trigger a recession? Or are they banking on it?
With key economic indicators tumbling and markets in turmoil, the probability of a recession is rising fast. Even Treasury Secretary Scott Bessent acknowledges that these policies will inflict short-term economic pain.
