A new report from the Congressional Budget Office shows that the US fiscal outlook has deteriorated sharply since Donald Trump returned to the White house last year. But rather than addressing America’s shaky public finances, Trump is courting disaster by devising ways to juice the economy before November’s midterm elections.
WASHINGTON, DC – Emerging-market policymakers are notorious for ignoring economic vulnerabilities during good times, thereby setting the stage for periodic bond- and currency-market crises when boom turns to bust. President Donald Trump’s efforts to stimulate the US economy ahead of November’s midterm elections – America’s fiscal health be damned – reflect a similar short-sightedness. The difference is that an emerging market-style crisis in the US would reverberate worldwide.