Economists Predict Trump Policies May Lead to Inflation Rise
Publication Time:2024-09-11 16:37:07
Economic experts have warned that if the Trump government enacts its tariffs as promised during the campaign, it might cause a range of economic problems. This includes the potential for inflation rates to rise by 0.7 percentage points within a year. Research from the Peterson Institute for International Economics notes that such a policy adjustment would not only escalate trade tensions but also provoke retaliatory tariffs from other countries, further distorting markets and increasing economic burdens. Moody's Chief Economist Mark Zandi goes further, stating that if Trump were to implement these tariffs, the US economy could quickly fall into recession. Zandi emphasizes that in this scenario, the global economy could also be affected due to the potential for retaliatory actions from other countries. According to his predictions, the first year after the implementation of the tariff policy would see the US inflation rate growing by 0.7%.
US Economy
Trump Policies
tariff policy
economic forecasts by economists
inflation increase