Cyceon assessed that the United States could generate instability with geopolitical and economic effects if the current political tension in Washington DC doesn’t end soon. After a very active start, the Trump administration now seems to be at a standstill as it is facing a massive offensive from its political and media opponents.
If such turmoil continues, US economic growth may well suffer from it. From a political viewpoint, therefore the question arises about how President Donald Trump will respond. Will he lower his weapons and give up his “hardline” program the “silent majority” has voted for? Or is he preparing a response that is commensurate with the political majority – unprecedented since the 1920s – that he has in Congress and across the country?
On his response the good health of the global economy in 2017 and beyond will partly depend. If the IMF forecast for the US is optimistic at the moment, it doesn’t take into account the current political crisis in DC where more than Republicans versus Democrats, this looks like “nationalists” versus “globalists”.
These are two worldviews which ardently oppose each other and reflect a political reconfiguration that is ongoing across the West as a whole, hence the relevance of political risk in macroeconomic assessments for 2017.