Economist: The US price war aims to cover inflation, not boost the economy
Mustafa Hantoush, a researcher and expert in financial and banking affairs, confirmed on Monday that the price war launched by US President Donald Trump aims primarily to cover the inflation rates accumulated in the United States over the past years, and not to boost the US economy as it is being promoted.
Hantoush explained, in a statement to Al-Maalomah, that “the halt of major economies, especially China and Europe, from investing in US Treasury bonds directly contributed to the rise in inflation rates without this being matched by actual growth in the US economy.”
He explained that "the United States relies on printing dollars and covering them through global markets when
its economy is growing, but in the event of a decline in growth, this causes an exacerbation of domestic inflation, which is what the current US administration is trying to address by attracting global companies to the US market."
He pointed out that "current policies aim to stimulate foreign and local capital to enter the US market as a means of reducing inflation, and are not the result of real strength in basic economic indicators." End link
