Trump’s Promises to Cut Inflation Are Unrealistic, Many Economists Say
Published On Sep 10, 2024, 12:02 PM
Former President Donald Trump has made ambitious promises to cut energy costs in half within a year and reduce inflation, primarily by expanding oil and gas drilling and reducing regulations for power plants. However, many economists doubt the feasibility of these claims, citing historical limitations on a president's ability to influence global oil prices and the costs associated with regulated utilities. Experts suggest that there is a significant gap between Trump's promises and the realities of economic policy, echoing patterns from his previous campaigns that focus on high-profile claims without substantial backing.
Stock Forecasts
XLE
Negative
Given that Trump's promises on energy costs and inflation are largely considered unrealistic by experts, any related investments in sectors he aims to improve may face challenges. Investors should be wary of overvalued energy stocks that rely on promises of rapid cost reductions.
VDE
Negative
As the political environment shapes investor sentiment, sectors influenced by regulatory changes, such as the energy sector, may be negatively impacted if Trump's proposals do not materialize. This could affect broader market confidence in energy investments.
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