You my have noticed FED going bust in the news a few times. There may be a Trump feature that relates. He set up taxation changes for a fixed period that ends early next year. Biden intended to change it when it ends to redirect who benefits effectively increasing the tax take back to more like it was.
Trump's intent. Even more tax reduction. Fine but that can result in a Truss situation so to do it he needs to reduce expenditure. He does to extend the time period of his earlier change as well. Or maybe get more from other areas "Drill Baby Drill" ? Interesting comment. Greening expenditure might figure?
The new noise from the Republicans goes China is preparing for war. They need to concentrate on that. China actually is going we will match or exceed US might. Posturing etc. There has been a US view that eventually China will be the top economy for rather a long time. They are not the only country that sees it that way. ) Read the west.
So where does this leave Europe. We live in Europe like it or not. One version from the Republicans is that all situations such as Ukraine eventually get settled diplomatically so get it over with. The other is not their problem so handle it yourselves. Ukraine as forecast has severely hit world trade aspects as Russia was well tied into it.
There is another factor that relates to the US that is of interest to who ever run it
US Trade Gap Largest Since October 2022 on Imports Surge The trade deficit in the US widened to $74.6 billion in April 2024, the largest since October 2022 from a downwardly revised $68.6 billion in March and below forecasts of a $76.1 billion gap.
Plus
The U.S. goods and services trade deficit with China was $367.4 billion in 2022. U.S. goods exports to China in 2022 were $154.0 billion, up 1.7 percent ($2.6 billion) from 2021 and up 39 percent from 2012.
Tariff trade wars. Trump wanted China to regulate steel prices by controlling their production. They wouldn't so he introduced a tariff. Biden same concerning just about anything relating to electric cars Some consideration of finding alternate sources for some materials. The EU has also introduced tariffs. World trade is hitting a bit of a problem in areas like this as it has with electronic bits and pieces. The US wants companies to make there even though costs are higher.
