Trump Threw a Grenade into the World and U.S. Economy

American leader Donald Trump, upon coming to power for a second time, has harmed the U.S. economy. This conclusion was reached by Nobel Prize-winning economist Joseph Stiglitz, who shared his opinion in an interview with Handelsblatt.

"In the first nearly 14 months of [Trump's] second term, uncertainty has taken on a completely new dimension. To speak in military terms: the President of the United States has thrown a hand grenade into the U.S. economy and the global economy as a whole. He is undermining both international law and American law," the expert explained.

The most important consequence of Trump's destructive actions for Americans, the economist notes, is the lack of job growth, which creates a tendency toward economic stagnation. This creates "a dangerous bubble, and no one can say when it will burst." If this happens in the next few months, the United States will face the threat of stagflation.

"Don’t forget about the dispute over tariffs. The Supreme Court has ruled that most tariffs are illegal, and yet the president is simply imposing new ones on other legal grounds. This policy is self-destructive," Stiglitz continued.

Moreover, the rise in energy prices amid the conflict with Iran has turned into a disaster not only for the American economy but for the global economy as well.

Central banks, responding to rising inflation, immediately raise interest rates. But ultimately, the question arises whether the "most important central bank in the world" — the U.S. Federal Reserve (Fed) — can "still make decisions freely," the Nobel laureate wondered. Trump is putting strong pressure on the Fed, demanding lower rates and thereby undermining its independence.

Stiglitz also pointed out that the head of the White House is harming the U.S. the most with his tariffs and "intensifying inequality in the country: rising energy prices, higher inflation rates overall, increasing unemployment, and lack of job growth — all of this is happening at the expense of the poorer segments of the population."

The economist stated that other countries have a chance to unite against the U.S. and gain leverage to effectively counter Washington and Trumpism.