Trump's plan to run economy hot includes tariffs, stimulus, lower rates; uncertain market implications

Trump is pushing to run the economy hot to get out of debt. The plan for the next 12 months includes more tariffs, fiscal stimulus, and lower front-end rates. Real growth is expected to remain stable, while nominal growth could reach 4-5% due to tariffs and fiscal measures. Short-term debt issuance will help keep interest on debt contained. Unlike past “Run It Hot” policies, this time there are concerns about inflation, tariffs, attacks on the Fed, and hostile policymaking. The market implications of this approach are uncertain, with potential consequences for the bond market.

Read more at Investing.com: Can Trump’s ‘Run It Hot’ Plan Trap the Fed and Jolt the Bond Market?