Trump’s first year will be filled with fiscal follies
Published On Dec 24, 2024, 10:56 AM
As Donald Trump assumes the presidency again, his administration may face significant fiscal challenges. With the government approaching critical funding deadlines and the risk of debt ceiling disputes on the horizon, Republicans are split on extending tax cuts and managing the national debt. Additionally, the likelihood of internal conflicts within the party could hinder potential tax reforms. Analysts predict more political and fiscal turmoil in 2025, which may lead to worrying economic implications, including potential debt rating downgrades.
Stock Forecasts
TLT
Negative
Given the potential for further fiscal chaos and the possibility of debt rating downgrades, investor confidence may be shaken, negatively impacting markets related to government debt. Additionally, sectors that rely heavily on consumer spending could react negatively if tax cuts face continued opposition.
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