Jane Yellen, who has served as the Chair of the Federal Reserve, Secretary of the Treasury, and Chairman of the Council of Economic Advisers, recently told Bloomberg that the United States is undermining its economic success. She said that Trump's attacks on the rule of law, the Federal Reserve, and higher education institutions are threatening the foundation of American prosperity. She stated that capitalism relies on the impartial enforcement of laws, and once policies change according to personal will and grudges, business investments will be hindered. She mentioned Trump's obstruction of wind power projects, imposing tariffs on Brazil out of personal vendettas, attacking universities and political opponents, and holding congressional funding hostage. She believes these precedents cause businesses and individuals to remain silent out of fear, creating policy uncertainty. She also pointed out that interventions in the Federal Reserve, demands for rate cuts, and undermining the independence of monetary policy would weaken the central bank's credibility, potentially endangering the stability of the dollar and capital markets. Yellen also warned that although the U.S. economy still appears strong, with a boom in AI investment and rising stock markets, this prosperity conceals underlying risks such as restricted university research, pressure on foreign talent, and long-term institutional erosion. She emphasized that technological innovation and the development of new enterprises are important drivers of U.S. economic growth, and any destruction of the system will come at a cost. Yellen pointed out that such institutional and policy erosion does not immediately reflect in prices but will have long-term effects on people's lives. She hopes that voters will correct policies that deviate from the rules through voting, preventing damage to democracy and the rule of law from having a profound impact on the economy.
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Original: www.toutiao.com/article/1849008497659019/
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