Please ensure Javascript is enabled for purposes of website accessibility
Economists Warn of Inflation and Debt Risks in Trump's Second Term Plans
News
By News
Published 2 weeks ago on
November 12, 2024

Trump's second term could reshape the economy through tax cuts, tariffs, and strict immigration policies, experts say. (AP File)

Share

Getting your Trinity Audio player ready...

A second Trump administration could significantly reshape the U.S. economy through various policy proposals. The former president’s plans include extending and expanding tax cuts, imposing tariffs on imports, and implementing strict immigration policies.

Trump has proposed extending portions of the 2017 tax cuts and introducing new reductions, including exemptions for tipped income and Social Security benefits. Wells Fargo economists Jay Bryson and Michael Pugliese noted, “Some additional tax cuts seem probable in our view, although the timing, size and specifics are highly uncertain.”

However, the economic stimulus from tax cuts could be offset by Trump’s proposed tariffs on imports, ranging from 10% to 20%. Economists warn these tariffs could increase inflation and harm U.S. manufacturers. Samuel Tombs of Pantheon Macroeconomics stated, “It will remain much cheaper to source goods from overseas, given relatively high U.S. labor costs, limiting the reshoring boost.”

Trump’s fiscal policies are expected to significantly increase government debt. The Committee for a Responsible Federal Budget estimates an additional $7.75 trillion in debt over the next decade, potentially leading to higher bond yields and mortgage rates.

Immigration Policies and Economic Impact

On immigration, Trump has called for mass deportations and stricter limits on legal immigration. Analysts project that these policies could result in negative net migration, potentially impacting the U.S. job market and economic growth.

The Federal Reserve may face challenges in a second Trump term. The central bank might need to proceed cautiously with interest rate cuts if Trump’s policies increase inflationary pressures. Additionally, Trump’s past criticism of the Fed raises concerns about the institution’s independence.

While the exact implementation of these policies remains uncertain, their potential impact on the U.S. economy is significant, affecting everything from consumer prices to labor markets and monetary policy.

Read more at NPR

RELATED TOPICS:

DON'T MISS

Augillard, Douglas Lead the Way as Bulldogs Rally Past Long Beach State

DON'T MISS

Israel Strikes Without Warning in Beirut, Kills at Least 15 as Cease-Fire Sought

DON'T MISS

Trump Taps Rollins as Ag Chief in Final Cabinet Pick

DON'T MISS

Fresno State Becomes Bowl Eligible, Defeats Colorado State on Senior Night

DON'T MISS

After Fresno Visit, Newsom Announces $24.7M Taxpayer-Funded Apprenticeship Program

DON'T MISS

How Will Merced County Fund Public Safety After Measure R’s Failure?

DON'T MISS

As Atmospheric River Soaks California, Farmworkers Await Flood Aid Promised in 2023

DON'T MISS

Sacramento Region Gained People but Flubbed Economic Opportunities Over 50 Years

DON'T MISS

Nations at UN Climate Talks Agree on $300B a Year for Poor Countries in a Compromise Deal

DON'T MISS

What to Know About Lori Chavez-DeRemer, Trump’s Pick for Labor Secretary

UP NEXT

Israel Strikes Without Warning in Beirut, Kills at Least 15 as Cease-Fire Sought

UP NEXT

Trump Taps Rollins as Ag Chief in Final Cabinet Pick

UP NEXT

After Fresno Visit, Newsom Announces $24.7M Taxpayer-Funded Apprenticeship Program

UP NEXT

How Will Merced County Fund Public Safety After Measure R’s Failure?

UP NEXT

Sacramento Region Gained People but Flubbed Economic Opportunities Over 50 Years

UP NEXT

Nations at UN Climate Talks Agree on $300B a Year for Poor Countries in a Compromise Deal

UP NEXT

What to Know About Lori Chavez-DeRemer, Trump’s Pick for Labor Secretary

UP NEXT

What to Know About Scott Turner, Trump’s Pick for Housing Secretary

UP NEXT

Trump Taps Investor Scott Bessent as Treasury Secretary

UP NEXT

NATO Head and Trump Meet in Florida for Talks on Global Security

Fresno State Becomes Bowl Eligible, Defeats Colorado State on Senior Night

14 hours ago

After Fresno Visit, Newsom Announces $24.7M Taxpayer-Funded Apprenticeship Program

16 hours ago

How Will Merced County Fund Public Safety After Measure R’s Failure?

16 hours ago

As Atmospheric River Soaks California, Farmworkers Await Flood Aid Promised in 2023

18 hours ago

Sacramento Region Gained People but Flubbed Economic Opportunities Over 50 Years

18 hours ago

Nations at UN Climate Talks Agree on $300B a Year for Poor Countries in a Compromise Deal

1 day ago

What to Know About Lori Chavez-DeRemer, Trump’s Pick for Labor Secretary

1 day ago

What to Know About Scott Turner, Trump’s Pick for Housing Secretary

2 days ago

Trump Taps Investor Scott Bessent as Treasury Secretary

2 days ago

NATO Head and Trump Meet in Florida for Talks on Global Security

2 days ago

Augillard, Douglas Lead the Way as Bulldogs Rally Past Long Beach State

LONG BEACH — Amar Augillard led Fresno State with 25 points and David Douglas Jr. made a go-ahead 3-pointer with 42 seconds left as the Bull...

13 hours ago

13 hours ago

Augillard, Douglas Lead the Way as Bulldogs Rally Past Long Beach State

13 hours ago

Israel Strikes Without Warning in Beirut, Kills at Least 15 as Cease-Fire Sought

13 hours ago

Trump Taps Rollins as Ag Chief in Final Cabinet Pick

14 hours ago

Fresno State Becomes Bowl Eligible, Defeats Colorado State on Senior Night

16 hours ago

After Fresno Visit, Newsom Announces $24.7M Taxpayer-Funded Apprenticeship Program

16 hours ago

How Will Merced County Fund Public Safety After Measure R’s Failure?

18 hours ago

As Atmospheric River Soaks California, Farmworkers Await Flood Aid Promised in 2023

18 hours ago

Sacramento Region Gained People but Flubbed Economic Opportunities Over 50 Years

Help continue the work that gets you the news that matters most.

Search

Send this to a friend