US president Donald Trump’s attacks on the chairman of the Federal Reserve, Jerome Powell, are yet another signal of a new era of economic policymaking and governance.

After repeatedly calling Powell “stupid” for not lowering interest rates quickly enough, Trump has now directed government prosecutors to launch a criminal investigation into Powell for allegedly misleading the Senate about the costs of renovations at the central bank’s buildings, allegations he denies.

While the immediate risk of forcing an interest rate cut too quickly would be higher inflation in the US, Trump’s unprecedented attacks on Powell cannot be seen merely as a domestic matter.

This is not just because of the US economy being the largest in the world, but also due to how businesses, consumers and governments use the US dollar in their economic affairs.

Since the 1980s when Trump was a celebrity businessman, he has been making his vision of economics clear. Now, as the most powerful man in the world, he is trying to put that vision into practice.

In this vision, there are clear winners and losers in any economic transaction. And instead of mutual benefits, the US must always be the winner.

While the fairness of trade relations is always open to academic and political scrutiny, the global economic order after the second world war has had a way of resolving disputes through........

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