Economist: The more aggressive Trump becomes, the more likely it is that the U.S. economy will fall into stagflation
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2025-01-10 04:02 8,022
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Golden Finance reported that the U.S. market responded enthusiastically to Trump's victory, but the trade has since eased. Economist Phil Suttle offers another scenario. His outlook shows that the more aggressively Trump pursues policies such as deportations and tariffs, the greater the likelihood that the U.S. will slip into a stagflation scare in the coming years. If immigration is cut off and workers deported, the labor force could lose all growth momentum or even shrink. Suttle estimates that with tariffs added, economic growth could stall or even reverse in 2025 and 2026. At the same time, both worker shortages and tariffs are likely to drive up prices, potentially pushing inflation to more than 3% a year. Suttle believes Trump's more aggressive policies could exacerbate these effects.