Trump’s Deregulatory Push Seen as Spark for US Financial Crisis
· World · Hindustan Times, economist, The Economist
Trump’s administration is tightening federal financial regulation by directing regulators through Executive Order 14215, which places the Federal Reserve, Treasury, and other agencies under direct White House control. The Treasury has argued that regulation itself can threaten stability, a claim made while equity markets rise and credit conditions weaken. In May 2025, the Fed announced a 10 % workforce cut, deleting about 2,400 employees across the system, and followed this with further reductions five months later. These actions, combined with the Supreme Court ruling allowing the president to remove heads of “independent” regulators, have weakened capital and supervisory standards in banks and thrift institutions. The report cites the savings‑and‑loan crisis of the 1980s, the global financial crisis of 2007‑09, and the 2023 regional bank failures as previous deregulation‑triggered crises, and warns a similar pattern could repeat under Trump.
Why it matters
US financial instability would affect global markets and could increase borrowing costs for Indian companies and consumers.
Read the original report — Hindustan Times
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