ONCE UNLEASHED, INFLATION IS A DIFFICULT BEAST TO TAME: Economists Warn of New Inflation Hazards After Election.
Inflation has fallen thanks to higher interest rates and big assists from healed supply chains and an influx of workers. But whether borrowing costs and price growth continue to ease next year could turn heavily on policy choices by Donald Trump or Kamala Harris.
Both candidates support policies to boost growth that might keep inflation from falling any farther. But economists and even conservative-leaning advisers worry that the ideas backed by Trump, in particular, risk stoking the embers of inflation. Those include his proposals to slap across-the-board tariffs on imported goods, to deport workers, and to lean on the Federal Reserve to lower interest rates.
“Put them all together, these levers are moving more in an inflationary direction. I’m legitimately worried about inflation worsening in 2025,” said Brian Riedl, a former Republican Senate aide now at the conservative Manhattan Institute.
I don’t know who Riedl is but I’m thinking the guy in this video has a better sense of what Trump wants to do:
Musk was asked, “How much do you think we can rip out of this wasted $6.5 trillion Harris-Biden budget?”
His response was stunning: “Well, I think we can do at least $2 trillion.” pic.twitter.com/sxrMwOiENE
— The Vigilant Fox 🦊 (@VigilantFox) October 28, 2024
Q: What do you call ripping $2 trillion out of the federal budget?
A: A good start.
But without cuts, Jeffrey Carter is right: All Roads Lead to Inflation. There Is No Way Out.