"Fed's Mouthpiece": The U.S. may face new inflation risks after the presidential election
"Federal Reserve mouthpiece" Nick Timiraos wrote that the Federal Reserve's two-and-a-half-year battle against inflation seems to have been successful, but the U.S. election could change this situation. Both candidates support policies promoting economic growth, which may prevent further decline in inflation.
However, economists and even conservative advisors are worried that views supported by Trump are particularly likely to ignite sparks of inflation. These include his proposals for imposing tariffs on all imported goods, expelling workers, and relying on the Federal Reserve to lower interest rates.
Overall, these policies are moving towards inflation. Trump's proposal might lead him into a new dispute with the Federal Reserve whose task is to maintain low inflation. Any factors that reignite inflation could cause officials to slow down or even stop plans for rate cuts.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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