I posted last week on Macquarie pointing to populist economic policies as "inflationary by design", and that the Fed's easing cycle may be shallower than presumed:
- while US inflation may continue to stay low in the next few months and allow the Fed to start easing in September, once 'popunomics' is invoked, inflation will be a feature of the system
In a note on Monday (more here) analysts at the investment bank reiterated:
- Trump's expected policies are likely to be more inflationary
- "Trump 2.0 will be a more inflationary policy regime, given restricted immigration, higher tariffs, and the extension of the Tax Cut and Jobs Act of 2025"
- forecast US Treasury yields and the dollar to be higher
- Trump regime may restrict immigration ... the removal of low-cost labor supply may put upward pressure on wages
- federal deficit ... also likely to expand under Trump
Agree / disagree? If comments could be non-partisan that'd be great. Like this dude says:
