- Hundreds to wed as Thai same-sex marriage law comes into force
- Musk seeks Trump pardon for 'Bitcoin Jesus,' charged with fraud
- Shakhtar deal blow to Brest's Champions League last-16 ambitions
- What would Trump tariffs mean for key trade partner Mexico?
- Does China control the Panama Canal, as Trump claims?
- Trump tells Putin to make Ukraine deal 'now' or face tougher sanctions
- Yemen's Huthis say freed detained ship's crew after Gaza truce
- Mel B, Trump and Milei: What happened at Davos Wednesday
- Spain's Sabadell bank to move HQ back to Catalonia
- Wembanyama returns to Paris for NBA games as a global star
- Besiktas romp to victory over Athletic in Solskjaer's first game
- 'Best feeling' as Hamilton drives first laps for Ferrari
- Argentina's Milei says would leave Mercosur for US trade deal
- Musk slams Trump-backed AI mega project
- Fashion world 'afraid' of Trump, says Van Beirendonck
- Trump intensifies crackdown on diversity, immigration
- Africa malaria jab rollout delivers 10 million doses
- End social media anonymity to fight fakes, crime: Spain PM
- Iran VP says government put off enforcing strict dress code
- P&G sees China improvement but consumers 'still struggling'
- Malian singer Traore to be freed from jail in Belgian custody case
- Anti-Semitic acts at 'historic' highs in France despite 2024 fall: council
- LA fires could boost US Oscar hopefuls: 'Emilia Perez' director
- Russians launch campaign to find loved ones behind front line
- Knife attacker in Germany kills two, including child
- Trump's meme coin venture sparks backlash
- India dismiss England for 132 after Buttler fifty
- Simmering anger as Turkey buries ski hotel fire victims
- Amorim takes responsibility for crisis at 'nervous' Man Utd
- Stock markets push higher as they track Trump plans, earnings
- African Union 'dismayed' US withdrawing from WHO
- 'She jumped out and died': witnesses recall hell of Turkey hotel fire
- UK minister warns Putin as Royal Navy tracks Russian 'spy ship'
- Neymar in talks to leave Saudi team Al-Hilal: club source
- French, German leaders say must act for 'strong' Europe
- Global green energy push likely to continue despite Trump climate retreat: UN
- Shooting, explosions in Jenin as Israel presses raid
- Spotlight on risk management as skiers tackle notorious Kitzbuehel downhill
- Rare wildlife species found in Cambodian national park
- EU Russia hawks back Trump call to boost defence spending
- Sinner races into semis as Swiatek closes on first Melbourne crown
- Syria's military hospital where detainees were tortured, not treated
- Prince Harry settles lawsuit against Murdoch's UK tabloids
- Sinner demolishes De Minaur to set up Melbourne semi with Shelton
- Sudan 'political' banknote switch causes cash crunch
- Malaysia's Anwar says don't single out China in sea tensions
- EU's top diplomat backs Trump call to boost defence spending
- Simmering anger as Turkey begins burying 76 fire victims
- Masa Son, Trump's Japanese buddy with the Midas Touch
- US govt workers in diversity jobs to be put on leave as programs ordered shut
CMSC | -0.3% | 23.48 | $ | |
SCS | -1.86% | 11.585 | $ | |
NGG | -2.58% | 60.04 | $ | |
RIO | -0.98% | 61.13 | $ | |
BCC | -0.88% | 127.99 | $ | |
RBGPF | 0.26% | 62.36 | $ | |
BP | -1.25% | 31.13 | $ | |
BTI | -0.44% | 36.57 | $ | |
BCE | -0.95% | 23.17 | $ | |
GSK | -1.03% | 33.435 | $ | |
CMSD | -0.17% | 23.96 | $ | |
JRI | -0.34% | 12.527 | $ | |
VOD | -2.03% | 8.38 | $ | |
AZN | 0.35% | 68.2 | $ | |
RELX | -0.63% | 49.24 | $ | |
RYCEF | 2.28% | 7.44 | $ |
Trump's policies won't push up inflation, economic advisor says
Donald Trump's policies are not likely to cause inflation to reignite as many analysts fear, one of the president-elect's longtime economic advisors told AFP Tuesday, less than a week before Trump returns to the White House.
Many economists have warned that Trump's campaign proposals, which included imposing sweeping import tariffs and overseeing the largest deportation in US history, could cause a spike in inflation, forcing the Federal Reserve to keep interest rates higher for longer.
In an interview, Stephen Moore, a longtime economic advisor to Trump, said that the full suite of policies the president-elect wants to push through, including deregulation and the extension of expiring tax cuts, should help keep price increases in check.
"You could point to some specific policies like tariffs that could be inflationary," said Moore, who is a senior visiting fellow at the conservative Heritage Foundation. "But you have to remember that we're also going to be reducing other taxes."
"Things that are made in the United States will have a lower tax, and things that are made in China will have a higher tax," he added. "So when you balance those out, you have, you may have relative price shifts, but not overall price increases."
- Across-the-board tariffs -
Economists at some of the top US banks have noted that Trump's tariff and immigration policies are likely to put upward pressure on inflation and downward pressure on growth, although many expect the impact to be relatively muted as long as Trump does not follow through on his more aggressive policy proposals.
But if Trump goes ahead with across-the-board tariffs of as much as 20 percent -- as he pledged to do on the campaign trail -- that could complicate the Federal Reserve's job as it looks to return inflation to its long-term target of two percent.
The US central bank has cut interest rates by a full percentage point since September in a bid to bolster the labor market. But a recent uptick in inflation has raised concerns that its inflation fight has stalled, putting pressure on Fed chair Jerome Powell to convince his colleagues to keep interest rates on hold.
"I think that Trump does understand that inflation is the enemy of the people, and inflation is also the enemy of a presidential term," Moore said, alluding to the impact that inflation and the cost of living played in the most recent presidential race.
"I do expect when Trump gets in and starts putting these policies in place, that you'll start to see a stabilization of prices," he added. "And if that doesn't happen then he may fire Mr. Powell."
In November, Powell told reporters he would not resign as Fed boss if asked to by Trump, adding that firing any of the central bank's seven governors -- including himself -- was "not permitted under the law."
- Early executive actions -
Moore told AFP that Trump was preparing to sign multiple executive orders during his first days in office aimed at undoing many of the Biden administration's policies.
The executive orders will most likely target "green energy mandates," diversity, equity and inclusion initiatives, return-to-office policies for federal workers, and the withdrawal of the United States from the "counterproductive" Paris climate accords, he said.
Another early priority for the next Trump administration will be immigration, he added, with the incoming president's team likely to follow a "worst first" policy focused on closing the southern border and then deporting undocumented workers who have broken the law.
"Get the worst people out of the country first, and then see where we go from there," he said.
P.Mira--PC