The Trump administration's broad and impactful economic policies are raising concerns about their potential to disrupt the stability and functioning of the global dollar system, with warnings that ad hoc and ideologically driven changes could pose long-term risks to financial stability and the global economy.

Significant reductions in the capacity and independence of consumer and investor protection agencies like the CFPB and SEC may negatively impact market confidence and consumer safety.

International relations have become more adversarial under the current administration, risking the reliability of US dollar liquidity support mechanisms such as FX swap lines, which are vital for global financial stability.

There is a strong focus on promoting stablecoins and cryptocurrencies, raising concerns about their potential impact on US sanctions and the integrity of the financial system.

Key policy shifts include deregulation of banking and financial markets, questioning international standards like Basel III, and efforts to increase presidential control over financial regulators and the Federal Reserve.

These policies could undermine trust and cooperation in the global dollar system, potentially leading to increased financial fragility, higher interest rates, and a possible decline in dollar dominance.