On Friday, Donald Trump’s boastful tour of the Middle East ended with a dose of national reality which gives to think while the president went to a retro-niven credit notation, the dark data on the feeling of consumers and the challenges of his flagship tax bill.
In the past two weeks, Trump has seen his approval ratings improve and the stock markets rebound strongly after interrupting some of the most aggressive import rates he announced in early April. Data on the job market and inflation have also been encouraging, defusing fears that a net slowdown or even a recession could not be imminent.
But while the president was on board the Air Force One on the way to Washington from Abu Dhabi, Moody’s has stripped the United States of his first-rate triple-order credit on concerns about the increase in public debt levels.
“For those looking for a sign to tell us when to stop adding to our national debt, they should not seek further than the demotion of Moody,” said Michael Peterson, managing director of the Peter G Peterson Foundation.
“It is unacceptable for a large country like America to harm its own credit rating.”
Earlier in the day, the investigation closely watched by the University of Michigan on consumers’ feeling showed that confidence had fallen to its second lowest level ever recorded, while people’s expectations against inflation have soared.
And shortly after, Trump suffered a setback in Capitol Hill when the conservative owners of the US chamber budget committee voted against his greatest national legislative objective: a bill to extend the tax reductions he promulgated in 2017 and promulgate deep public spending reductions.
Delicate policy is a codrown of economic partnership pacts of several billion dollars and investment agreements signed during the president of the president in Saudi Arabia, in Qatar and the United Arab Emirates this week.
Accompanied by Phalanx of business leaders led by Elon Musk as well as senior officials of the cabinet, including Scott Bessent, the American secretary of the Treasury, and Howard Lunick, the Secretary of Commerce, a dynamic Trump saw the lucrative agreements as a vote of confidence in the American economy.
“This is the new industrial revolution, and it is led by Donald Trump and it will be incredible jobs for the Americans,” Fox News told an interview with the United Arab Emirates.
Back in Washington, Trump is counting on the adoption of what he calls the “great good bill” to mitigate part of the success of households and businesses of the president’s new prices – and restoring confidence in his stewardship of the economy.
The fate of the tax bill is increasingly occupying the front of the stage in Washington as Trump and Republican leaders of the Congress’s Lower Chamber, their thin majority to approve the legislation.
But Friday, there was a big setback to his progress when he failed to progress in the budget committee of the Chamber.
The Republican of South Carolina Ralph Norman, who was one of the groups opposed to the bill, said: “If we want to continue to have ….
Shortly after the vote, Asset Posted on X: “Republicans must unite behind:” The one, Big Beautiful Bill! ” “”. “We don’t need” wasteland “in the republican party. Stop talking and do it! ”.
Meanwhile, moderate republicans in the districts of the battlefield insist on more generous tax deductions for the tax payments of states and local, known as “salt”, another point of collision that the president will have to find a path.
Even if the impasse is broken on Capitol Hill, the tax hawks warned that the implications for American public finances could be disturbing.
The committee of a responsible federal budget, a bipartite group, warned on Friday that the legislation would add 3.3 TN to the American debt over a decade and risks frightening bond investors in the same way as the British budgetary crisis of 2022.
“The current budgetary situation in the United States is worse than that of the United Kingdom, and the impact of the deficit of the package currently under study is even greater than the pack of farms. job.
The disastrous data of the feelings of consumers on Friday did not reflect the impact of the agreement of the United States and China in Switzerland at the start of the week to defuse their trade war and lower the tit-form prices that they had slapped since early April.
But Walmart, the largest retailer in the world, warned this week that he should increase prices in his stores despite American-Chinese relaxation, and economists said that consumers’ feeling feeling was an additional sign that Trump’s trade policies remained high.
An average survey by Realclearpolitics This week revealed that 50.1% of Americans disapprove of Trump’s performance as president, while 46.1% approve.
Although the deficit of 4 percentage points is narrower than the deficit of 7.1 approval points that it had at the end of April, it was a great decline compared to the advantage of 6 percentage points that it posted in January at the start of its second mandate.
“The fears concerning the inflationary impacts of the prices have remained the greatest source of pessimism for consumers, even if recent talks to retreat certain prices have led to a substantial takeover for stock markets,” wrote Oxford Economics in a note on Friday.
He added: “Consumers have also become more worried about their personal finances and expect a weakening of income growth.”
George Steer additional report
