The Economy Is Finally Stable. Will That Change With Trump?

Published On Dec 18, 2024, 5:04 AM

The U.S. economy is ending 2024 on a stable note with low inflation and unemployment, and interest rates being lowered by the Federal Reserve. However, the economic outlook for 2025 is uncertain due to President-elect Donald Trump's proposed policy changes. His plans include new tariffs, possible immigration restrictions, tax cuts, and slashing regulations, which could have mixed effects—ranging from higher consumer prices and slower growth to boosted corporate profits and economic expansion. The contradictory nature of these proposals creates unpredictability for the economy going forward.

Stock Forecasts

Given the proposed tax cuts which may stimulate growth, alongside the potential economic impacts of tariffs that could lead to higher prices and slower growth, the overall market reaction could be mixed. However, corporate sectors that stand to benefit from deregulation may see strength.

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