Concentrated Executive Power, Deregulation, And Conflicts Of Interests Everywhere Is Dangerous

Vincent Mortier, the chief investment officer of Amundi, one of the world’s largest asset management firms, has issued a dire warning about the potential risks to the U.S. economy stemming from increased executive control over regulatory agencies, according to the Financial Times.

Mortier’s concerns come in response to President Donald Trump’s latest efforts to curtail independent watchdogs, a move Mortier describes as a “big, big mistake” that could undermine global trust in the U.S. financial system.

The Trump administration aims to tighten White House oversight of federal regulatory agencies, requiring them to submit draft regulations for review and adhere to presidentially defined performance standards. Critics argue that this directive threatens the independence of institutions designed to provide checks and balances, a foundational element of the U.S. economic system.

Mortier emphasized that the U.S. economy’s strength relies on institutional integrity. “At the end of the day, what is working in the U.S. is the checks and balances,” Mortier told the Financial Times. “If everything is put under executive power, with an agenda for deregulation and conflicts of interest everywhere, it is the start of the end of how democracy is working. It’s quite dangerous, really.”

A key concern among investors is the stability of the U.S. dollar, which serves as the global reserve currency. Mortier warned that trust in the dollar is directly tied to confidence in U.S. institutions. “The biggest threat is whenever people—particularly big foreign investors—start to question that trust,” he said. “I don’t think we’re there yet, but we are seeing more and more actions that could start to erode it.”

Trump’s tariffs are also causing global mistrust, according to Yale Insights. While tariffs on steel and aluminum may counteract market distortions caused by foreign countries like China, Trump’s approach, including threats to impose tariffs on Mexico and Canada, is eroding trust and destabilizing the global trade system, Yale School of Management’s Jeffrey Sonnenfeld and co-authors Stephen Henriques and Steven Tian argue. Business leaders are alarmed by the uncertainty surrounding these policies, with trade groups like the U.S. Chamber of Commerce opposing the tariffs.

The growing skepticism is spurred on by ongoing conflicts of interest within the U.S. government. Mortier believes these issues have reached unprecedented levels. While conflicts of interest have always existed in politics and finance, he argues that “now we’ve reached another level.”

Trump has repeatedly said he wants lower interest rates, and while Treasury Secretary Scott Bessent insists the administration is focused on long-term bond yields, market observers worry about undue political pressure on the Fed. And, investors are also weighing the risks posed by a weakening regulatory framework against broader economic trends such as inflation and slowing growth.

Mortier believes that while Federal Reserve Chair Jay Powell is unlikely to succumb to direct pressure, the real concern lies in what happens after his term ends in 2026. “Who will replace Powell?” he asked, suggesting that Trump’s regulatory strategy could have long-term implications for the Fed’s independence and the broader financial system.

Also complicating matters is that Trump things the calculations about the economy might not be right. Trump has questioned the accuracy of the U.S. federal debt figures, suggesting potential fraud in their calculation, The Conversation reported. The U.S. national debt, currently at $36 trillion, includes money owed within the government and to the Federal Reserve, inflating the total figure. Trump claims the U.S. may owe less than thought, citing an investigation by the Department of Government Efficiency (Doge).