President--elect Donald Trump's plans for higher tariffs, lower taxes, and more curbs on immigration are expected to reignite inflation, but economic forecasters are divided over whether they'll weaken or boost the U.S. economy, the USA Today website reports today (Nov. 9, 2024).
Eventually, Trump's signature economic policies may cancel out the benefits of his plans for lower taxes. That could weaken growth overall, but would stop short of triggering a recession, economists say.
Americans are living in the moment, optimistic that Trump can ease the pain of high inflation over the past four years. Election polls consistently showed the economy and inflation were top of mind.
"I voted for Donald Trump because four years ago, the economy was way better than it is right now and I trust that he will fix the economy again," said Charles Maleski of Chalfont, Penn.
Trump, a Republican and the 45th president, won election over Democratic Vice President Kamala Harris . Control of the U.S. Senate flipped to Republicans , while as of yesterday afternoon, the House remained up for grabs.
"There is a great deal of speculation in the market, because the policies of a Trump Presidency with a Republican Congress will be starkly different than those of the Biden Administration," Michael O'Rourke , chief market strategist at Jones Trading, said in an email.
Trump has threatened to impose tariffs of 10% or 20% on all imports, and up to 60% on Chinese shipments.
Mark Zandi, chief economist of Moody's Analytics, said, "While President Trump's policies will diminish the economy, they will not undermine it, as the President will likely moderate his policies and even pivot if it looks like they are doing significant economic damage."
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