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Inflation pain helped secure Trump win but his policies mean higher prices

www.theguardian.com Inflation pain helped secure Trump win but his policies mean higher prices

Markets expect his policy package to harm trade and growth but reduce business taxes

Inflation pain helped secure Trump win but his policies mean higher prices

Summary

Financial markets reacted quickly to Donald Trump’s return to the presidency, with higher share prices, a stronger dollar, and expectations of slower interest rate cuts.

Trump has outlined plans to cut taxes, impose high tariffs, restrict migration, and reduce regulations. Economists warn that his economic policies could hinder growth and drive up consumer prices, while benefiting corporate profits.

Trump’s tariffs, especially a 60% levy on Chinese imports, are expected to strain the eurozone.

Inflationary pressures from his policies may also challenge the Federal Reserve’s efforts to lower interest rates.

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