Economists are sounding the alarm with a fresh wave of concern, projecting a steep rise in US inflation after the presidential election.
According to a recent study cited by the Wall Street Journal, the US economy could take a sharp turn after November 5, 2024. Preliminary estimates suggest that inflation in the country could accelerate, challenging the Federal Reserve’s ongoing battle to control prices.
For the past two and a half years, the United States has been fighting inflation, and those efforts have already borne fruit. The Fed’s tight monetary policy and an influx of labor have helped ease price increases.
Uncertainty looms, however, as much depends on the incoming president's policy approach. Analysts note that both leading candidates, Republican Donald Trump and Democrat Kamala Harris, have expressed support for economic growth initiatives, suggesting that inflation may remain elevated.
Some economists are particularly concerned about Trump’s proposed policies, which could intensify inflationary pressures. His potential measures include tariffs on imports, mass deportations of workers, and calls for the Fed to lower its key interest rate. All of these actions are likely to drive up prices for goods and services.
Earlier forecasts also pointed to a possible rise in unemployment. Experts polled by Bloomberg predict the US unemployment rate could climb to 4.4% by 2025, up from 4.2% in August 2024, before falling back by 2026.
