Economic Implications of Trump's Directions and Executive Orders

It cannot be overlooked that Donald's character automatically tends to confuse advocates before competitors and has a passion for opening parallel fronts, which is evident in the size of executive orders followed by sharp statements about the Federal Reserve.

On January 23, Trump called on the Fed to immediately cut interest rates, while signing an executive order prohibiting the Federal Reserve from developing a digital currency, coinciding with the federal's move to pursue a more cautious interest reduction strategy.

At the same time, Trump stressed the importance of reducing energy prices globally. Energy costs represented about 40% of the increase in inflation in December. It is noted here that Trump asked OPEC to reduce energy prices.

It is also important to remember that the US Federal Reserve took several measures before the end of last year to strengthen its independence by making decisions to lower the rate based on economic indicators, Trump stated that he should have a say over monetary policy decisions made by the Federal Reserve with the prospect of reshaping federal policy.

While the planet lived in a unique media noise that accompanied Donald Trump's inauguration ceremony as President of the United States, this did not occupy the international community's acquisition of the 47th President of America as much as caring about an extraordinary personality, who is set to assume this position of influence and directs the realities and future of global, giving that the global economy has not fully recovered from the fallout of the coronavirus pandemic, Donald's friends (Musk) are at the forefront of expected lineup for the new administration.

On the official level, the White House announced that President Donald Trump will sign a number of executive orders on the first day of his second term.

Reuters shed light on the news of "Trump" canceling what it described as "Biden's sanctions" on settlers who committed acts of violence against Palestinians in the "West Bank"'.

While Fox News focused on the US President signing an executive order to withdraw from the World Health Organization, NBC News focused on Trump signing an executive order to withdraw from the Paris Climate Agreement, CNN highlighting Trump signing an executive order abolishing birthright citizenship in America, and Bloomberg focusing on Trump imposing 25% tariffs on Canada and Mexico, starting next February.

Trump did not wait to renew his opposition to climate action as among the executive decisions issued by the new US President (January 20) was withdrawing from the Paris Climate Agreement for the second time, making the United States (the second source of greenhouse gas emissions globally after China) along with Iran, Libya, and Yemen, the only countries in the world outside the agreement.

This coincided with Trump issuing several executive orders "previously promised", including declaring a national emergency in the energy sector to simplify permits and regulations that he sees as imposing unjustified burdens and suspending offshore wind permits.

These types of executive orders suggest that Trump's second term will witness a US climate decline from the scene, especially in the areas of energy transition and climate finance (which may encourage countries and companies to follow similar policies that harm climate ambitions at the international level).

It can be said that these Trump decisions and executive orders have raised concerns about the repercussions of the American decline in the climate scene, as Simon Steele, Executive Secretary of the Climate Change Agreement, warned (January 20) that ignoring climate policies, especially clean energy, threatens to exacerbate climate disasters and the effects of abandoning climate neutrality on food and water security.

On the level of domestic financial and monetary policies, Trump and his new team face important internal challenges, most notably efforts to control the federal budget deficit, and attempts to slow inflation, which rose in December 2024 to about 2.9%.

As for America's neighboring countries, Trump's voicing his desire to take back the Panama Canal (accusing China of running it) and changing the name of the Gulf of Mexico (changing it to the Gulf of the United States) may increase the chances of economic tension and fears of disruption to supply lines.

Since the inauguration ceremony coincided with the opening of the Davos Economic Forum, the head of the forum made it clear in his speech that the world is witnessing exceptional moments of geopolitical transformations, and the director of the World Trade Organization warned of trade wars due to customs duties.

Here, I would like also to emphasize that what was not mentioned in the interventions of the participants in the Davos Forum sessions is Trump's return, the statements issued by him, and the orientations of his staff and those around him (the rise in interest in cryptocurrencies) increase the chances of continued economic uncertainty and fluctuations in financial markets.

It is also notable that Trump's orientations contradict the general orientation of the Davos Forum, which focuses on pluralism and multilateral international institutions (Trump takes negative positions towards the World Health Organization and the Paris Climate Agreement).

Notable, the executive orders are a decree signed by the president, which determines the mechanism for managing the federal government and allows the president to exercise his powers without interference from Congress.