The alarm of danger is struck by economists in , warning that the political lines of both Kamala Harris and his could skyrocket inflation, with their fear being greater for Republican plans. Donald Trump’s proposals include high tariffs on imports, restrictions on immigration and pressure on the Federal Reserve to reduce interest rates, according to economic analysts who are trying to radiograph the following day since the US election. They are concerned that these tycoon policies can increase inflation and create new challenges for the economy. Although the plans of the two policies include stimulating growth, Donald Trump’s plan presents a number of risks, given the current economic conditions. Inflation has declined recently, reaching 2.4% in September, thanks to higher interest rates, improvements in supply chains and increased labour force. But economists believe Donald Trump could easily overturn this trend and cause a 2nd wave of inflation. “If you look at it all together, these factors lead towards an increase in inflation. I am really worried that the inflation picture will worsen in 2025,” explained Brian Riddle, a former councillor in the Senate and now at the “Manhattan Institute”. One of the most controversial measures is his proposal to impose 10% duties on all imports, as well as higher duties on Chinese imports, likely reaching 60%. “Company will pass the cost of tariffs on consumers, thus increasing prices,” AutoZone CEO Philip Daniele said speaking to WSJ. The second fearsome point for economists is the strict immigration policies of the tycoon, aimed at reducing foreign workers. “The mass deportations would reduce economic production and boost inflation. With fewer labour market workers, companies will likely face increased wage costs, which could increase the prices of goods and services,” says a study by the Peterson Institute of International Economy. The third reason for concern is Donald Trump’s possible influence on Federal Bank policy. During his 1st term, the former president had pushed the Federal Reserve to reduce interest rates, and experts predict that he would follow a similar tactic if elected again. In the opposite, Kamala Harris seems to have fewer risks than those of her opponent. Its approach includes promoting housing construction, reducing living costs and reducing taxes for households. The Democrat has committed that its new spending will be financed by new taxes or other sources of revenue, which could limit inflation. Although inflation can be reduced if Kamala Harris is elected, analysts from the Commission on Federal Budget Management estimate that its policies will increase the deficit by about 3.5 trillions. dollars over the next 10 years. Donald Trump in turn is believed to increase the deficit during $7.5 trillion. “The increased deficit could push the bond market and likely lead to higher interest rates, further increasing pressure on the US economy,” they say. Some economists fear that if Donald Trump’s policies create new inflationary pressures, the bond market could react negatively, demanding higher yields for holding Treasury titles.
U.S. Election 2024: The “radiography” of Donald Trump’s financial program – “is in danger”
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in World