Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/334517 
Year of Publication: 
2025
Series/Report no.: 
BOFIT Policy Brief No. 20/2025
Publisher: 
Bank of Finland, Bank of Finland Institute for Emerging Economies (BOFIT), Helsinki
Abstract: 
The turbulent first eleven months of Donald Trump's second presidency has been characterized by policy actions and statements that create large uncertainties and sideline multilateral cooperation. The Trump administration has fueled substantial trade policy uncertainty globally, as well as pushed protectionist policies that have induced negative supply shocks to the US economy. Monetary policy is frustrated by inflationary pressures from an elevated federal deficit. Green energy projects are proactively sidelined in favor of a return to fossil fuels. Stricter immigration policy and deportation of undocumented migrants threatens to reduce US economic output, adding to price pressures. The eventual push-back from the general public, courts and lawmakers has yet to materialize, so the Trump administration continues to move ahead on deregulation of financial markets, including the easing of capital and stress testing, as well as a modifying the laws and regulations affecting bank mergers and crypto currencies.
Subjects: 
tariffs
trade war
fiscal policy
federal deficit
green energy
fossil fuels
deportations
financial deregulation
small open economies
Persistent Identifier of the first edition: 
Document Type: 
Research Report

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