[Economics] Warren warns Trump’s policies could lead to another economic crash

[-CosmiNNe]

Senator Elizabeth Warren has issued a stark warning that former President Donald Trump’s economic agenda, particularly his aggressive approach to tariffs and potential moves against the Federal Reserve, could spark a major financial crisis. Warren cautions that firing Federal Reserve Chair Jerome Powell would significantly undermine the Fed’s independence, destabilizing domestic and global financial markets. She emphasized that financial deregulation and weakening economic safeguards—echoing the mistakes that led to the 2008 crash—could trigger widespread economic turmoil once again.

Warren pointed to Trump’s sweeping tariffs and ongoing battle with the Fed as evidence of a broader threat to market confidence. She argued that these policies not only risk stalling economic growth, but also threaten essential investor trust in the U.S. dollar and its financial institutions. Drawing lessons from her experience during the last financial crisis, she emphasized the critical need for strong regulatory frameworks and central bank autonomy to prevent reckless policymaking from tipping the economy into a tailspin.

Her warnings come amid mounting concerns from top economists and financial leaders that Trump’s trade strategy could be the catalyst for a new downturn. According to Warren, the current trajectory—marked by large-scale deregulation, tariff escalation, and attacks on the Fed—echoes the warning signs from past economic disasters. She stressed that without intervention, these policies could disproportionately impact everyday Americans and exacerbate economic inequality.

In response, Warren is advocating for enhanced oversight and legislative action to reinforce economic safeguards. She believes it is essential to reclaim and reinforce the checks and balances that regulate fiscal policymaking and financial markets. Her call to action underscores a broader effort among policymakers to forestall a retreat into short-sighted economic populism and preserve stability for American families and investors.

https://www.msn.com/en-us/news/politics/warren-warns-trump-s-policies-could-lead-to-another-economic-crash/ar-AA1IHXs3