The United States is in a vulnerable position. Its army is stretched thin to supply the current wars and will take years to rebuild. The abrupt withdrawal from Afghanistan damaged the United States’ global reputation, making it difficult to galvanize opposition to Russia or Hamas through once-formidable American soft power. The United States is also struggling economically under an administration dominated by activist regulators and a badly flawed budget process that contributes to the nation’s decline through high spending, taxes and debt. Long-term economic growth projections are below 2%.
However, there is a positive point. The recent spike in bond yields creates an opportunity for the Federal Reserve. It has monetary and regulatory powers that profoundly influence growth. You need to use them.
Copyright ©2023 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8