Mar-a-Lago Accord spells uncertainty for the global financial system
Bruegel Senior Fellow Alicia Garcia-Herrero explains that Trump’s unfounded and erratic economic agenda has led to investor panic and fears of the implementation of the proposed ‘Mar-a-Lago Agreement’ to restructure US debt and weaken the dollar.
Large-scale sell-offs of US Treasuries represent a shift for the global financial system under the Trump administration. While the proposed Mar-a-Lago agreement is unlikely to be implemented due to its potentially devastating global consequences, the instability it reveals has undermined the long-held status of US Treasuries as the world’s safest asset.
