Most economists predict higher inflation, deficits, and interest rates under Trump, not Biden

From Investing.com: 2024-07-14 06:21:37

Most economists predict higher inflation, deficits, and interest rates under a second Trump administration compared to if Biden remains in the White House, according to The Wall Street Journal. Survey of 68 forecasters shows 56% believe inflation would be higher under Trump, largely due to his policy preferences on trade and immigration.

Economists at the Economic Outlook Group warn of a real risk of inflation reaccelerating under a Trump presidency. The latest data shows a predicted 1.7% growth in U.S. gross domestic product this year, down from 3.1% in 2023. Unemployment is expected to stay slightly above 4% through 2026.

The forecasts from economists suggest a 28% probability of a recession over the next 12 months. Analysts express concerns that inflation will increase under Trump’s leadership, affecting various economic indicators such as GDP growth and unemployment rates. The WSJ reports little change in these predictions since April.



Read more at Investing.com: Inflation, deficit under Trump would be worse than under Biden, WSJ’s survey shows By Investing.com