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"Federal Reserve mouthpiece": The US may face new inflation risks after the election

"Federal Reserve mouthpiece": The US may face new inflation risks after the election

CointimeCointime2024/10/28 06:55
By:Cointime

"Fed Whisperer" Nick Timiraos stated in a post that the Fed's two-and-a-half-year struggle to lower inflation appears to have been successful, but the U.S. election may change this situation. Both candidates support policies that promote economic growth, which could prevent inflation from further declining. However, economists and even conservative advisers are concerned that Trump's supported views are particularly likely to ignite inflation. These include his proposals for comprehensive import tariffs, expulsion of workers, and reliance on the Fed to lower interest rates. Taken together, these policies are all heading towards inflation. Trump's proposals could put him in a new battle with the Fed, whose task is to maintain low inflation. Any factor that reignites inflation could cause officials to slow down or even stop the interest rate reduction plan. 

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