Waning trust in Trump's economy is about to hit your mortgage
Against the backdrop of war in Iran, a trade war with Canada and bond sell-offs, trust in the US dollar appears to be weakening, and it will likely have an impact today when the RBA announces its rate decision.
The US dollar's dominance as the world's reserve currency is under threat, leading to rising mortgage costs in Australia. Once synonymous with American power, the greenback's position is weakening due to investor skepticism about the US economy. Global bond markets are in turmoil as investors dump US dollar debt, causing interest rates to soar to their highest levels in decades.
The US National Debt, which has doubled since Donald Trump's presidency began in 2016, now exceeds $40 trillion, and inflation is soaring due to geopolitical tensions. The Reserve Bank of Australia (RBA) faces a decision to raise interest rates for the fourth time in 2026, driven by concerns over a faltering US economy and its impact on global financial stability.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
