After the US election, Mr. Trump made an economic problem more complicated, experts worry about "retaliation"

Investors are increasingly confident that the US economy will be able to make a “soft landing”. However, experts note that the re-election of US President Donald Trump is complicating this outlook.

The US economy has become unpredictable after the election. (Source: Medium)

Some economists see the US economy facing rising inflation if Mr Trump delivers on his campaign promises.

Joseph Stiglitz, Nobel Prize-winning economist and professor at Columbia University, assessed that the US economy is in a "soft landing" phase, but this phase will likely end on January 20, 2025, when Mr. Trump officially takes office.

Mr Trump and his proposed policies are likely to cause higher inflation, as his campaign pledges included high tariffs on imported goods, corporate tax cuts and immigration restrictions.

These policies could put significant pressure on the already high federal budget deficit and force the US Federal Reserve to reconsider its interest rate path.

Goldman Sachs economist Jan Hatzius said the biggest risk now is the imposition of comprehensive tariffs, which could have a strong impact on economic growth.

Meanwhile, Ms. Jennifer McKeown, an economist at the consulting firm Capital Economics, admitted that inflation is at risk of increasing, mainly due to the tariff policies and immigration restrictions proposed by Mr. Trump.

Tariffs were one of Mr Trump’s most talked-about campaign pledges. The US president-elect has pledged to impose tariffs of at least 10% on all trading partners and 60% on goods imported from China.

Meanwhile, Neel Kashkari, President of the Minneapolis Fed, noted that the possibility of other countries "retaliating" in a trade war would keep inflation high in the long run.

"If inflation rises, the Fed will have to raise interest rates. He believes that combining higher interest rates with retaliation from other countries will slow the global economy. This will lead to the worst case scenario: an economy that is both inflationary and stagnant or slow in growth," said Neel Kashkari.

Source: https://baoquocte.vn/post-election-of-my-father-trump-causes-a-disaster-of-the-economy-to-be-more-fussy-chuyen-gia-lo-tra-dua-294178.html