Former Labor Secretary Robert Reich issued a stark warning in a new essay published on Substack Tuesday, cautioning that President Donald Trump’s increasing influence over the U.S. economy could ultimately be his undoing.

Reich, a vocal critic of the current administration who served under President Bill Clinton, highlighted Trump’s efforts to assert control over key economic institutions and sectors. From attempting to shape the Federal Reserve to rewarding loyal businesses, Trump’s interventions are shifting economic decisions away from traditional market forces.

“An increasing part of our economy is no longer being determined by supply and demand but by the deals Trump is striking,” Reich observed. He pondered whether this phenomenon could be labeled as “State capitalism” or “Fascist capitalism,” emphasizing the concerning implications for the economy.

According to Reich, Trump’s unpredictable and arbitrary decisions are creating uncertainty in the private sector, dissuading investment and raising global lenders’ concerns. This trajectory, he warned, could lead to a dangerous combination of inflation and recession, known as ‘stagflation.’

“If nothing else brings him down, his authoritarian control over the economy surely will,” Reich concluded, underscoring the potential risks associated with Trump’s expanding grip on economic matters.