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Trumponomics would not be as bad as most expect

Jul 11th 2024 | Washington, DC

In markets it is known as the “Trump trade”, a bet that Donald Trump’s return to the White House would herald more inflation and higher interest rates. Many of Mr Trump’s core policies push in this direction: tariffs would add to import costs, deportations of immigrants could push up wages and deficit-financed tax cuts would juice the economy. Amid mounting inflation, the Federal Reserve would have little choice but to opt for higher rates.

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This article appeared in the Finance & economics section of the print edition under the headline “Halting his charge”

From the July 13th 2024 edition

Discover stories from this section and more in the list of contents

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