Trump and the Growing Politicization of the US Dollar

The United States dollar is experiencing an era of increasing politicization, according to an analysis by EL PAÍS. The report suggests that the currency is being increasingly utilized as a tool of policy, a development that is contributing to the erosion of the Federal Reserve.

Mechanisms of Politicization

The analysis identifies the use of tariffs and sanctions as primary mechanisms through which the dollar is being politicized. These tools are being used alongside growing tensions involving the Federal Reserve, creating a shift in how the nation’s currency and its central bank operate.

The piece characterizes this institutional erosion as an “unintended gift” from the Trump administration. The analysis suggests that the changing role of the Federal Reserve may have significant implications, effectively opening the doors of America to new and shifting dynamics.