President Donald Trump’s second term is accelerating the transformation of an already-rapidly evolving global economy.
His administration’s forays into Iran and Venezuela reveal a pivot away from sanctions as a tool to control foreign governments. Meanwhile, US senators are on the verge of a breakthrough on legislation that would create a permanent regulatory framework for cryptocurrency, enshrining digital assets in the US financial sector well after Trump vacates the Oval Office.
The US is trying to open retirement plans to private markets; US banking regulators recently unveiled industry-heralded capital requirements that would require financial institutions to keep less cash on hand to cover losses. At the same time, the administration has proven it’s not afraid to butt heads with its private-sector allies as the White House pursues a ban on institutional investors in housing.
Amidst it all, the US Federal Reserve is staring down what Chair Jerome Powell recently described as “a very difficult situation” as its members struggle to weigh a softening labor market against persistent inflation while, at the same time, grappling with uncertainty from the war in Iran and the rise of artificial intelligence.
Policymakers and executives are navigating an increasingly unpredictable economy in Washington and beyond.
