Economists Say Trump Presidency Likely To Boost GDP, Start Trade Wars
Boost GDP, bring on higher interest rates, push up inflation and start trade wars—those are the things economists say we can expect from a Trump presidency.
Economists expect Trump will aim to reduce taxes and invest in infrastructure to stimulate the economy, the Wall Street Journal reports. On average, economists increased growth estimates for the US economy to 2.2% next year up from 1.5% over the past 12 months.
Experts also forecast inflation to hit 2.2% next year and 2.4% by 2018, which if correct would be the first stretch of sustained inflation over 2% since before the Great Recession. At the same time, 43% of economists cited the potential for a trade war as the biggest risk to the economy. [WSJ]