04/14/2025
Dear Senator McCormick;
I am a resident of Pennsylvania and a constituent of yours and I'd you to answer a question or two.
The New York Times reported a few days ago that:
The bedrock of the financial system trembled this week, with government bond yields rising sharply as the chaotic rollout of tariffs shook investors’ faith in the pivotal role played by the United States in the financial system.
And CNBC reported:
“The market is re-assessing the structural attractiveness of the dollar as the world’s global reserve currency and is undergoing a process of rapid de-dollarization. Nowhere is this more evident than the continued and combined collapse in the currency and US bond market as this week comes to a close,” Deutsche Bank strategist George Saravelos said in a note to clients Friday.
So, as I understand it the administration's back and forth on tariffs has undermined the confidence in world markets over the stability of the US as "global reserve currency" and that's why Trump blinked on his tariffs.
Saravelos said in that note that "The damage has been done ... both in terms of relative economic growth outcomes and foreign investor willingness to fund the U.S. external deficit.
In light of all that, do you still think that the tariffs were a good idea? Did you ever? And if you've changed your mind on the utility of Trump's tariffs, what are you doing to fix the damage this administration has caused?
I'll await your answer, Senator.
NOTE: As always, I'll post your response here.
