All articles tagged with #trade deficits
A group of nearly 50 prominent economists, including former Federal Reserve Chairs Bernanke and Yellen, filed a brief urging the US Supreme Court to overturn President Trump's global tariffs, arguing they are based on misconceptions about the economy and won't effectively address trade deficits, with oral arguments scheduled for November 5.
President Trump has been imposing tariffs on foreign goods to increase federal revenue, reduce trade deficits, and encourage domestic manufacturing, but questions remain about who ultimately bears the cost of these tariffs and where the collected money goes.
Strategists at the Carson Group believe that the US dollar will remain the dominant global reserve currency due to the world's confidence in the US, the dollar's dominance in trade and international finance, and the US's willingness to maintain massive trade deficits. The US's trade deficit leaves foreign buyers holding onto a heap of dollars that it needs to put somewhere, and they often turn to US treasuries or hold USD in cash, which are liabilities of the US government that the US is more than willing to issue.