The United States economy proves so robust that Donald Trump can afford almost any decision without major immediate consequences.
Despite the blows launched against Iran and the rising price of oil, Wall Street remains relatively stable, and the American dollar appreciates. The United States benefits from solid structural advantages, allowing it to absorb shocks, while other regions of the world face a deep energy crisis, according to an analysis by the Financial Times.
Since the beginning of the American-Israeli attacks on February 28, the price of fuel has increased by about 15–20% in the United States. However, the global impact is much more severe. Natural gas remains relatively stable across the Atlantic, but it is becoming significantly more expensive in Europe and Asia, where supply disruptions lead to higher bills, factory shutdowns, reduced working hours, school closures, and chain bankruptcies. Although no one wins from this conflict, the greatest economic losses are felt outside American borders.
American oil and gas producers are already recording significant profits
Bond markets send the same message: investors anticipate higher inflation outside the United States. In Washington, Donald Trump’s associates present the rising price of oil as a temporary effect for consumers, offset by the advantages of an economy that has become a net energy exporter. In this context, oil and gas producers are already recording significant profits, reinforcing the perception that the American economy can withstand even risky military decisions.
This resilience fuels a form of overconfidence that precedes the current administration and permeates the entire American establishment, notes commentator Ruchir Sharma. The Joe Biden administration had already heavily used financial tools, freezing hundreds of billions from Russian reserves after the invasion of Ukraine. Currently, numerous leaders in technology and finance are downplaying internal risks, betting on the American advance in the field of artificial intelligence, which strengthens the country’s economic attractiveness.
Individual investors continue to support American stock markets
This dominance is also reflected in capital flows: the United States’ share in global markets significantly exceeds its contribution to global GDP. Individual investors continue to support American stock markets, remaining constant buyers even in the context of the conflict. For many, the images coming from Tehran seem like just background noise, and Wall Street withstands better than most other financial markets.
Read more HERE