The next few years are likely to test the ability of the Federal Reserve to jump a number of hurdles. With more and more political pressure of all kinds, it is difficult to see an outcome where the Fed comes through unscathed. And the way in which the Fed navigates these obstacles will determine its future.
Dr. Lacy Hunt shares his thoughts on how the Trump administration’s proposed policies are likely to impact the US economy. He reminds us that, despite increasing optimism for the US economy post-election, key underlying conditions have worsened.
The cracks first appeared with the Greek debt crisis in 2010. Since then, the European Union (EU) has been put through the mill—and then some. The latest fault line to rattle Europe is the insolvent Italian banking system.
Britain voted to “Brexit,” Donald Trump won the White House, and Italy shot down their pro-EU government, voting “no” to constitutional reform—2016 witnessed a populist revolt. What conditions have catalyzed this rapid surge in support for populism?