Harvard economist warns of economic challenges and dollar risks with Trump in office

Harvard economist Kenneth Rogoff warned at the World Economic Forum that the U.S. economy may face significant challenges with Donald Trump back in office. He highlighted issues like tariffs, inflation, and the national debt, which has exceeded $36 trillion. Rogoff noted that rising national debt could lead to higher interest rates, impacting the dollar's strength. He compared the current situation to the 1970s when inflation caused the dollar to lose value, suggesting similar risks could arise again. Concerns about the dollar's dominance were also raised, as other countries explore alternatives. Rogoff indicated that Trump's approach might backfire, potentially encouraging nations to diversify away from the dollar.