Two Moves Trump’s ‘Cronies’ Made That Have Krugman Worried About 2008-Style Meltdown
Synopsis
The economist pointed to Trump appointee to the Fed, Michelle Bowman, advocating for loosening capital requirements, and the passing of the GENIUS Act as threats to financial stability.
Economist Paul Krugman on Friday warned that President Donald Trump’s policies are undermining the financial stability of the U.S. economy.
Terming it a “MAGA war” on financial stability, Krugman sounded the alarm bells by pointing out that President Trump’s appointee to the Federal Reserve, Michelle Bowman, has advocated for the rollback of stringent bank capital requirements.
Krugman also pointed to the passing of the GENIUS Act in July to promote stablecoins as the second policy concern threatening the financial stability of the U.S. economy.
The GENIUS Act establishes a regulatory framework for stablecoins, requiring them to be fully backed by liquid assets, such as the U.S. dollar and government securities.
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