I posted last week on Macquarie pointing to populist economic policies as “inflationary by design“, and that the Fed’s easing cycle may be shallower than presumed:
while US inflation may continue to stay low in the next few months and allow the Fed to start easing in September, once ‘popunomics’ is invoked, inflation will be a feature of the system
In a note on Monday (more here) analysts at the investment bank reiterated:
Trump’s expected policies are likely to be more inflationary
“Trump 2.0 will be a more inflationary policy regime, given restricted immigration, higher tariffs, and the extension of the Tax Cut and Jobs Act of 2025″forecast US Treasury yields and the dollar to be higher Trump regime may restrict immigration … the removal of low-cost labor supply may put upward pressure on wagesfederal deficit … also likely to expand under Trump
Agree / disagree? If comments could be non-partisan that’d be great. Like this dude says:
This article was written by Eamonn Sheridan at www.forexlive.com.
