Donald Trump's recent election victory is set to reshape the economic landscape in the United States, influencing Federal Reserve policies and market expectations. With promises of tax cuts, increased tariffs, and a crackdown on immigration, Trump's administration is expected to drive economic growth while also raising concerns about inflation and trade relations, particularly with Canada and China.
The Federal Reserve is anticipated to cut its benchmark interest rate by a quarter of a percentage point, but Trump's victory has led to expectations of a slower rate-cutting path. Analysts predict that the Fed may only implement two rate cuts in 2025, with the policy rate stabilizing at a higher level than previously expected.
This shift in expectations is largely due to stronger-than-expected economic data and the potential for Trump's policies to stimulate growth and inflation.
Trump's proposed tariffs, particularly a universal 10% tariff on imports, could significantly affect U.S. consumers. Retailers are likely to pass on the costs of these tariffs, leading to higher prices for everyday goods.
The National Retail Federation warns that consumers could lose between $46 billion and $78 billion in spending power annually due to these tariffs.
Trump's return to the presidency raises concerns for the Canadian economy, particularly regarding trade relations. Canadian business leaders fear that proposed tariffs could shrink the economy by approximately $30 billion annually, with the manufacturing sector being the most vulnerable.
The potential for increased tariffs complicates the upcoming negotiations regarding the Canada-United States-Mexico Agreement, which is set for review in 2026.
Trump's policies are expected to have far-reaching effects on the global economy. Central banks worldwide are adjusting their strategies in response to the anticipated changes in U.S. economic policy, particularly regarding trade and inflation.
As the world watches how Trump's administration will unfold, the implications for both domestic and international economies remain significant, with many uncertainties ahead.
Global economic indicators show signs of recovery, with GDP growth projected to rise, unemployment rates declining, and consumer confidence increasing. Explore the latest trends and forecasts.
Global economic indicators are showing signs of recovery, with improvements in GDP growth, employment, and consumer spending. This article explores the key metrics and sectors driving this positive trend.
US economic indicators are raising concerns about inflation, with rising consumer prices and potential impacts on monetary policy.
We're just a bunch of guys mixing up market news with our own brand of banter, giving you the lowdown on stocks with a twist at Walk The Street Capital.
