What will happen if Donald Trump is re-elected US president in November? The economists of Commerzbank analyze how the US dollar (USD) might behave under a Trump presidency.
Will the dollar be great again?
The next “Trump dollar” is likely to be strong, at least in the short term. Shutting down foreign competition, deregulation, low taxes for companies and the rich: Trump's political agenda is likely to increase the return on capital invested in the United States in many ways. And this should make the dollar more desirable, that is, more valuable.
In the long term, however, the closure could lead to a loss of efficiency and therefore a weaker dollar. The prospect of a strong dollar could also be dashed if Trump is not content with publicly criticizing the Fed, as he did in his first term, but actually intervenes in Fed affairs. This would be clearly negative for the dollar. .
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
