The Erosion of the Sources of American Economic Power

In the past year, Donald Trump has upended the global trading system and used American economic power like no president in recent memory. He’s imposed tariffs to force other countries to fall into line on commercial issues and geopolitical disputes—like this week’s threats against NATO partners over Greenland. He’s called into question the role of the dollar. And at home, he’s attacked the independence of the Federal Reserve and intervened in private-sector decision-making.

Lael Brainard served as director of the National Economic Council in the Biden administration and, before that, as vice chair of the Federal Reserve. Dan Kurtz-Phelan spoke to her not about the short-term consequences of Trump’s policies but about what they would mean for U.S. power and prosperity in the long term. Brainard has taken on that question in recent pieces for Foreign Affairs. In this conversation, she stressed not just the risks posed by Trump’s economic agenda but the bigger changes necessary to sustain American economic success into the future.

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