The Governor of the Central Bank of Taipei (Reuters) -Taiwan warned on Saturday that the rapid increase in American debt could be “unfavorable” to the prospects of US Treasury bills and that the trade policies of US President Donald Trump made prudent investors.
According to the central bank, $ 593 billion of $ 593 billion in Taiwan represent more than 80% of the US Treasury bonds, which said earlier this month that treasury bills were “solid” and still favored by investors. He added that there was no worries about the position of the dollar as the main international reserve currency.
Governor Yang Chin-Long, in a speech published on the Central Bank website, said Trump’s repeated criticisms on the monetary policy of the American federal reserve had caused concerns about his independence.
“In addition, Trump 2.0’s trade policy has made investors hesitating to keep the US Treasury obligations; Trump’s budget, the Big Beautiful Bill Act ” can lead to an increase in American debt, which is unfavorable to the prospects of sovereign debt,” he said.
“All these elements have had a significant impact on the international monetary system focused on the US dollar and according to American solvency.”
The Trump’s tax cutting bill is the centerpiece of its national program.
The bill would result in an increase of 2.8 billion of dollars greater than expected of 2.8 billions of dollars of the federal deficit during the decade, despite an increase in American economic production, the budget of the non -partisan congress budget scheduled for Tuesday.
Trump, during his first weeks in power, also announced scanning prices on a large band of countries and business partners, including Taiwan, to suspend them for 90 days in April to allow talks.
Yang said Trump hoped that prices could resolve the American trade deficit.
“However, the pricing policy does not only manage to solve structural problems, but it will also have an impact on the American economy and will threaten more the prospects of global trade and the economy.”
(Report by Liang-Sa Loh and Ben Blanchard; edition by Jacqueline Wong)
