16/03/2025
"The S&P 500 has given up nearly all its gains since the election. Although economic growth remains fair, in recent weeks the yield on ten-year Treasuries has fallen, measures of consumer sentiment have plunged and small businesses’ confidence has slipped, hinting at a slowdown to come," the article reads. "Meanwhile, inflation expectations are rising, perhaps because Mr Trump is talking about all those wonderful new tariffs."
It goes on to criticize Trump for ignoring inflation and his claim that "the economic harm from tariffs is worth it." Tellingly — the magazine points out — Trump is not constantly posting on social media about the stock market like he during his first term. Clearly, he knows the situation is dire.
The Economist then shifts its attention to Trump's inner circle, stating that his Treasury and Commerce Secretary are failing to rein Trump in, making them "come across as stooges."
"For some reason, Mr Trump reserves special hostility for Canada and the EU. Because his approach lacks any coherent logic, there is no knowing how to avert his threats," the piece continues.
"The world economy is at a dangerous moment. Having defied reality (and the constitution) after he lost the election in 2020, only to be triumphantly re-elected in 2024, Mr Trump has no patience for being told that he is wrong," the piece reads. "The fact that his belief in protectionism is fundamentally flawed may not sink in for some time, if it ever does."
"As the message that Mr Trump is harming the economy grows louder, he could lash out at the messengers, including his advisers, the Fed or the media. The president is likely to inhabit his protectionist fantasy for some time. The real world will pay the price," it concludes.