Trump’s Plans Could Spur Inflation While Slowing Growth, Study Finds
Published On Sep 26, 2024, 1:11 PM
A recent analysis from the Peterson Institute for International Economics warns that Donald Trump’s proposals to deport migrants and impose heavy tariffs would harm the U.S. economy, leading to reduced economic growth, increased inflation, and a negative impact on employment. The report suggests that such policies would ultimately result in American citizens bearing the brunt of these changes, contradicting Trump’s assertions that they would mainly affect foreign entities. These findings come as Trump pushes for a manufacturing revival through corporate tax cuts and significant tariffs, though many economists question the feasibility of his proposals.
Stock Forecasts
TGT
Negative
The proposed policies by Trump, particularly the significant tariffs and restrictions on immigration, could lead to higher consumer prices and inflation, which may adversely affect economic stability. As such, sectors that rely heavily on trade and labor, such as consumer goods and manufacturing, may suffer, while those geared toward domestic production may see a temporary benefit.
XLF
Negative
The potential eroding of the Federal Reserve's independence could lead to volatility in interest rates, impacting financial stocks negatively as investor confidence might decline.
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