The number one challenge is the depreciating dollar. From Jeffrey Tucker at The Epoch Times via zerohedge.com:
The first great challenge to the Trump administration is controlling inflation. It is coming back already and we might face a second wave that emerges in the summer. Throughout the campaign, we’ve had almost no honest talk about the reasons for this devastation.
It cannot be stopped through “anti-gouging” legislation. No one ever believed that this would achieve anything. The message had no public resonance at all.
But just as crucially, the inflation was not kicked off by energy regulation and throttles on oil and gas production. That increased transportation costs, yes, but the oil price now is not high and inflation is still a menace.
The root of the problem is so unbearably obvious, so much so that it feels pointless to point it out. For two years, the money stock grew $6 trillion on the backs of a wild spending bonanza by Congress, all of which was paid for by Fed purchases of new debt.
Because the new money was directly distributed to the population as if by helicopter, it watered down the value of the U.S. dollar in terms of goods and services. Growth stopped with rate increases but the Fed has reversed itself again in an attempt to forestall recession.
