The U.S. current account deficit hit a 20-year high in Q1, reaching $450 billion, 6% of GDP. The imbalance, influenced by Trump’s trade policies, has led to a record capital account surplus and a net U.S. liability of $26 trillion. Economists debate the causes and solutions, with concerns about foreign investment and overvalued securities. Proposed strategies include trade barriers, a weaker dollar, and Fed policy easing.
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