How Will Trump's Election Win Change The Macro Outlook?
- The US budget deficit is plumbing depths unseen - by wide margins - relative to the pre-pandemic era. The current level of red ink for fiscal 2024 is $1.832 trillion. Budget forecasters see the deficit deepening in the years ahead without sizeable policy changes.
- A key factor for the budget outlook is how, or if, the government responds to the expiring tax cuts passed during Trump’s first administration that are due in 2025.
- The combination of a sharp reduction in the workforce - resulting from deportation of millions of immigrants - and a surge in tariffs on imported goods strikes some economists as a recipe for higher inflation.
Douglas Rissing
Elections have consequences, and so, Donald Trump’s return to the White House as the 47th president will surely change the calculus. The policy differences between the Republican president-elect and the Biden administration are substantial on multiple fronts, ensuring
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