Mixed impacts expected on inflation, energy policy, and trade in a potential second Trump term

From Investing.com: 2024-07-27 04:11:02

With the potential of a second Trump presidency looming, analysts expect mixed impacts on inflation, energy policy, and trade. The GOP platform highlights tackling inflation, as consumer prices have surged, with core PCE inflation potentially hitting the Fed’s target. Trump plans to boost energy supply through deregulation to lower prices and stimulate growth.

Questions arise over the feasibility of further increasing energy supply, as U.S. production is already high, impacting profit margins for energy companies. Trump’s trade policies may include significant tariffs on imports and Chinese goods, sparking concerns of inflation. However, previous tariff hikes have not always led to inflation spikes, with onshoring and investment helping mitigate pressures.

Beyond these issues, analysts and investors are exploring the potential impacts of Trump’s policies on immigration, tax cuts, fiscal policy, and regulations in a potential second term.



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