The World Economy Is Becoming Wary of the U.S.
America’s position of global economic stability is starting to look shakier as the Trump administration piles on debt and doubles down on sanctions.
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America’s position of global economic stability is starting to look shakier as the Trump administration piles on debt and doubles down on sanctions.
Credit...Matt Chase
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· 9:18 min
Sept. 16, 2026Updated 9:41 a.m. ET
Global investors are balking at U.S. bonds. Talk of the dollar’s dwindling power is getting louder. Foreign governments are hauling their gold out of American vaults.
Almost two years into President Trump’s second term, the world economy is increasingly looking for ways to distance itself from America. Concerns about a $40 trillion debt burden, the excessive use of sanctions to solve foreign policy problems and Mr. Trump’s penchant for pushing the limits of the rule of law are raising questions about the appeal of the United States as a haven for global investment.
Despite pledges by foreign companies and nations to invest in the United States — in many cases to curry favor with the White House — capital is starting to seek alternative destinations.
“Geopolitical factors and U.S. weaponization of the dollar through financial sanctions are causing central banks and other official investors to attempt to diversify away from dollar assets,” said Eswar Prasad, the former head of the International Monetary Fund’s China division.
The United States is not yet an investment pariah. Private investors are still pouring money into American financial markets and stocks, artificial intelligence infrastructure is booming and no rival currency is poised to topple the dollar imminently.
In testimony before Congress on Tuesday, Treasury Secretary Scott Bessent said that he remained confident in the credibility of the U.S. financial system, arguing that bond auctions continue to operate successfully and that the dollar is still thriving as measured by its share of global transactions.
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Originally published by nytimes.com. Syndicated material does not necessarily reflect the views of Glamour Canada.
