Borrow
Why Trump’s pro-growth agenda looks set for ‘failure’
US President Donald Trump is stuck between a North Korean rock and a hard US debt ceiling at present, which one hedge fund has said will make it more difficult for the “increasingly isolated” president to execute his plans.
Why Trump’s pro-growth agenda looks set for ‘failure’
US President Donald Trump is stuck between a North Korean rock and a hard US debt ceiling at present, which one hedge fund has said will make it more difficult for the “increasingly isolated” president to execute his plans.
The current US administration has faced numerous difficulties over the past few weeks, London-based fund manager Man FRM said in a statement, with numerous missteps undermining confidence in the president’s ability to enact his pro-growth agenda.
“The last six weeks have easily been the most chaotic of the Trump presidency so far,” the statement said.
“The failure of the health care bill has raised questions over Trump’s ability to enact his pro-growth agenda, and this was followed by a catastrophic mishandling of the far-right rally in Charlottesville which culminated in a mass walkout of CEOs from the White House business advisory panel.”
Additionally, Man FRM cautioned that support for Mr Trump within his own cabinet appeared to be slipping.
“Throughout the month the president became increasingly isolated from cabinet members – after a flurry of hiring and firing, those that still have a job appear to be cooling in their support,” the statement said.
For markets, these challenges have come at an “inopportune” timing, as Mr Trump must now deal with the threat of military action from North Korea, and the possibility of the US government hitting its debt ceiling (which limits the amount of money government can borrow by limiting the amount of bonds that can be issued).
Hitting the debt ceiling would put the country at risk of having its credit rating downgraded, which would make it more expensive for the government to borrow money; and typically the government has raised the ceiling whenever it risks reaching this limit to avoid this outcome.
Investors trying to make sense of all of these risks also face a number of challenges, the statement said, with risks around military engagement or even a potential nuclear strike difficult to forecast probabilistically.
“Nine times out of 10 your probabilistic forecast will be too low for, say, the equity market,” the statement said.
Despite this, the risks around “a complete failure of the Trump presidency” is more ‘normal’, and it’s these risks that will undermine Mr Trump’s pro-growth agenda.
“Given the deterioration of support within the upper echelons of the Republican Party, we have little confidence for either an advancement of Trump’s pro-growth agenda or a smooth resolution of the debt ceiling issues,” Man FRM said.
RELATED ARTICLES
Banking
Open banking, real returns: How an Australian brokerage turned CDR data into deal velocity
Open banking is no longer a whiteboard theory—it’s a working growth engine. This case study unpacks how a mid-sized Australian brokerage (“Pink Finance”) operationalised Consumer Data Right (CDR) data ...Read more
Banking
Open banking’s quiet revolution: how one broker’s data play rewrites speed, trust and margin
Open banking is shifting from compliance cost to commercial engine, and early adopters in Australia’s broking market are already monetising the curve. The playbook: consented bank-grade data piped ...Read more
Banking
Open banking in action: An early adopter’s playbook—and the ROI case for Australian brokers
Open banking is shifting from conference buzzword to operational backbone in Australia’s broking sector. Early adopters are using bank-grade data and AI to compress underwriting cycles, cut compliance ...Read more
Banking
Australian brokerage pedals ahead using consented data for a speedy advantage
Open banking is no longer a concept; it is an operating model shift changing how brokers originate and package credit. Australia’s early movers, backed by the Consumer Data Right (CDR) and a ...Read more
Banking
BOQ’s mortgage squeeze is a market signal: where banks will win next as competition bites
Bank of Queensland’s shrinking home-loan book is more than a single-institution story; it’s a barometer of how Australia’s mortgage market is being rewired by broker power, non-bank agility and ...Read more
Banking
RBA’s next move: Why a November cut could reset corporate risk budgets
Australia’s unemployment rate has risen to a four‑year high, sharpening the case for another Reserve Bank easing as growth moderates. With GDP expanding 0.6% in the June quarter and 1.8% year on year, ...Read more
Banking
PayPal Open Debuts in Australia: A Unified Platform for Business Growth
Sydney, 14 October 2025 – In a significant move to bolster commerce capabilities for businesses across Australia, PayPal has officially launched its new merchant platform, PayPal OpenRead more
Banking
RBA holds interest rates steady at 3.6% amid strong labour market and inflation concerns
In a widely anticipated move, the Reserve Bank of Australia (RBA) announced that it would maintain the cash rate at 3.6%. The decision was unanimous, reflecting a cautious approach as the central bank ...Read more
Banking
Open banking, real returns: How an Australian brokerage turned CDR data into deal velocity
Open banking is no longer a whiteboard theory—it’s a working growth engine. This case study unpacks how a mid-sized Australian brokerage (“Pink Finance”) operationalised Consumer Data Right (CDR) data ...Read more
Banking
Open banking’s quiet revolution: how one broker’s data play rewrites speed, trust and margin
Open banking is shifting from compliance cost to commercial engine, and early adopters in Australia’s broking market are already monetising the curve. The playbook: consented bank-grade data piped ...Read more
Banking
Open banking in action: An early adopter’s playbook—and the ROI case for Australian brokers
Open banking is shifting from conference buzzword to operational backbone in Australia’s broking sector. Early adopters are using bank-grade data and AI to compress underwriting cycles, cut compliance ...Read more
Banking
Australian brokerage pedals ahead using consented data for a speedy advantage
Open banking is no longer a concept; it is an operating model shift changing how brokers originate and package credit. Australia’s early movers, backed by the Consumer Data Right (CDR) and a ...Read more
Banking
BOQ’s mortgage squeeze is a market signal: where banks will win next as competition bites
Bank of Queensland’s shrinking home-loan book is more than a single-institution story; it’s a barometer of how Australia’s mortgage market is being rewired by broker power, non-bank agility and ...Read more
Banking
RBA’s next move: Why a November cut could reset corporate risk budgets
Australia’s unemployment rate has risen to a four‑year high, sharpening the case for another Reserve Bank easing as growth moderates. With GDP expanding 0.6% in the June quarter and 1.8% year on year, ...Read more
Banking
PayPal Open Debuts in Australia: A Unified Platform for Business Growth
Sydney, 14 October 2025 – In a significant move to bolster commerce capabilities for businesses across Australia, PayPal has officially launched its new merchant platform, PayPal OpenRead more
Banking
RBA holds interest rates steady at 3.6% amid strong labour market and inflation concerns
In a widely anticipated move, the Reserve Bank of Australia (RBA) announced that it would maintain the cash rate at 3.6%. The decision was unanimous, reflecting a cautious approach as the central bank ...Read more
