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US Dollar Dominance, Trump's Trade War, And The Threat Of Recession: This Week In Economy
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US Dollar Dominance, Trump's Trade War, And The Threat Of Recession: This Week In Economy
May 25, 2025 9:35 PM

The past week has been a rollercoaster ride for the markets, with significant shifts and potential economic shocks looming on the horizon. From the unique advantage of the US in navigating economic shifts due to its dollar-denominated debt, to the escalating tariff war initiated by President Donald Trump, the economic landscape is rife with uncertainty. Here’s a quick recap of the top stories that shaped the week.

Dollar-Denominated Debt: A Privilege for US Policymakers

Amidst the ongoing market shifts, the U.S.’s unique position as the issuer of the world’s reserve currency provides it with a significant advantage. According to Bob Elliot, co-founder, CEO, and CIO of Unlimited and former investment committee member of Bridgewater Associates, the US can prioritize domestic economic conditions due to its debt being denominated in US dollars.

Read the full article here.

Trump’s Trade War: Deals, Higher Taxes, and Potential Recession Avoidance

JPMorgan Chase ( JPM ) predicts that the ongoing tariff war could lead to agreements between the U.S. and its trade partners, along with a significant rise in tax rates. The global investment strategy team at JPMorgan Wealth Management has projected that the effective tax rate could surge to between 10% and 20%.

Read the full article here.

See Also: Gold Now Worth 100x More Than Silver: Analysts Say It’s Time To Buy The Underdog

Trump’s Approval Rating: A Mixed Bag

Despite economic uncertainty, President Donald Trump’s approval rating stands at 45% in a new Gallup poll. However, an Economist/YouGov poll shows a 16 point drop since he took office in January.

Read the full article here.

Recession on the Horizon?

As the global trade war escalates due to unprecedented U.S. tariffs, Peter Mallouk, the CEO of Creative Planning, has mapped out three possible economic scenarios, with the worst-case outcome forecasting a deep recession and a potential stock market plunge of up to 60%.

Read the full article here.

Trump’s Tariffs: A Potential $30 Trillion Blow

Former Secretary of the Treasury Lawrence H. Summers warns that the tariffs imposed by President Trump could cost the economy $30 trillion, describing them as the "most expensive and masochistic" move by the U.S.

Read the full article here.

Read Next:

‘Stay BIG, Sell Rips’: Hartnett Doubts Bull Market Without 3 Key Catalysts

This story was generated using Benzinga Neuro and edited by Rounak Jain

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