Inflation’s Message From and To Trump

So much can and will be said, but one helpful message to be drawn from this election is that politicians and policymakers should be deathly afraid of ever loosing the inflation beast again. Memories and aftereffects of the price rises of 2021-2023 fed into the economy being an overriding reason for ousting Democrats from the White House. This should be particularly useful in restraining Donald Trump and whoever he might appoint to the Federal Reserve from pursuing a monetary out from the looming fiscal squeeze that he has yet to address. If anything, Trump has ruled out significant steps to contain the budget deficit and national debt, promising only some Elon Musk magic along, of course, with tariffs and deportations that would elevate costs. If Democrats win the House majority, he will not gain social spending cuts even if appoints officials who will seek them. But there will be no free lunch from debasing the dollar and inviting another round of inflation, either.

https://www.wsj.com/politics/elections/how-trump-won-over-americans-on-the-economy-f9551283

Published by timwferguson

Longtime writer-editor, focusing on topics of business and policy, global and local.

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