Economists warn Trump policies may increase inflation risks
Economists are raising concerns that Donald Trump's proposed policies could lead to increased inflation, contrary to his claims of economic prosperity. His plans include sweeping tariffs and mass deportations, which analysts believe may create uncertainty and pressure prices upward.
While Trump argues that tax cuts will stimulate growth, many economists warn that these measures could worsen the already large government deficit. They suggest that higher costs from tariffs and reduced labor supply could lead to job losses and rising unemployment.
The Federal Reserve's independence may also be at risk, as Trump has indicated a desire to influence monetary policy. This could complicate the Fed's efforts to manage inflation, especially as the economy is still recovering from previous inflationary pressures.