Trump's fateful mistake on Washington's financial watchdog

Washington

THE founding myth of US President Donald Trump's administration is that it will look out for ordinary Americans, and that cutting taxes on companies, deregulating finance, and rolling back environmental protections will achieve that. None of this makes any sense, and the administration's claims that these measures will spur an economic boom - with annual growth accelerating from 2 per cent to 3 per cent - are pure fantasy.

American voters are beginning to figure this out - as indicated by recent election results in Virginia and elsewhere. But it will take a while for the falsity of Mr Trump's promises to be exposed, partly because many macroeconomic changes are complex and become apparent (or don't) over time. Now, however, Mr Trump has made a major tactical mistake. By seizing control of the Consumer Financial Protection Bureau (CFPB), and placing an ideological extremist in charge, he has brought to the fore the deepest flaws in his administration's founding myth.