President Donald Trump’s massive tax law may have more sweeping effects than anticipated by policymakers, with giveaways that could reignite inflation. Analysts project a potential “refund surge” in 2026, with an average refund of $3,278 to 104 million taxpayers. This could boost consumer spending similarly to pandemic stimulus checks.

However, concerns about fragile American consumers and potential inflation spikes persist. Despite holiday spending being higher than last year, experts debate the impact of shock-and-awe policies on everyday Americans. Analysts predict a decline in inflation may prompt the Fed to continue easing policy beyond the current meeting. Wage growth is a key factor in influencing inflation.

Read more at Yahoo Finance: Inflation may surge again thanks to the tax-law giveaways