Speaking today via satellite before approximately 3,000 attendees at the World Economic Forum, President Donald Trump provided his agenda for where he wants to take the American and world economies. It was basically a rehash of some of his written executive orders over the last three days.
Mr. Trump declared that the election provided him with a mandate on the economy and that along with a healthier U.S. and world economy, there would also be world peace.
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In the face of what he described as $8 trillion in wasteful spending, he promised the Davos audience that he would take action to reverse inflation including taking advantage of the U.S.’ inventory of oil and natural gas, eliminating unnecessary regulations, and securing the United States as headquarters of the cryptocurrency and artificial intelligence industries.
Interest rates, said Mr. Trump, should fall in the United States and around the globe. The vision of falling interest rates is in line with a desire for reducing inflation and creating a weak dollar, goals Mr. Trump has hinted as necessary to bolster the export of American products. Falling interest rates would indicate an accounting for lowered inflation risks. As the price of the dollar falls, the theory goes, prices of American exports should also fall.
The President made clear that he saw an inequitable relationship between Europe and the United States in terms of trade. In describing what he sees as a regulatory landscape constraining trade between Europe and the United States, Mr. Trump shared his personal experience about getting regulatory approval for a construction project in Ireland including the lengthy period he endured waiting for permits. According to Mr. Trump, European companies have an easier time entering the U.S. markets to sell their products versus U.S. companies selling products in the Europe.
Again, nothing earth shattering or unexpected. Listeners may not have expected a conciliatory tone, and Mr. Trump did not disappoint.
Alton Drew
23 January 2025
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