Economist Peter Schiff warned that Donald Trump's America First policy may be weakening U.S. investment appeal, as foreign capital retreats from American assets. Schiff said in a post on X that the U.S. once benefited from inflows tied to global trade surpluses, but that dynamic is reversing amid rising tariffs and a weakening dollar. He also flagged a potential drop in foreign demand for U.S. bonds, which could hike interest rates and deepen losses. With rising costs, falling asset prices, and growing deficits, Schiff warned of a severe recession and possible fiscal crisis if the Fed must backstop both Treasuries and federal debt.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02Economist Peter Schiff warned that Donald Trump's America First policy may be weakening U.S. investment
00:06appeal as foreign capital retreats from American assets. Schiff said in a post on X that the U.S.
00:12once benefited from inflows tied to global trade surpluses, but that dynamic is reversing
00:17amid rising tariffs and a weakening dollar. He also flagged a potential drop in foreign demand
00:22for U.S. bonds, which could hike interest rates and deepen losses. With rising costs,
00:27falling asset prices and growing deficits, Schiff warned of a severe recession and possible
00:32fiscal crisis if the Fed must backstop both treasuries and federal debt.
00:37For all things money, visit Benzinga.com slash GSTV.